Tapestry's established brands like Coach and Kate Spade cultivate strong customer loyalty. This allows for premium pricing and repeat purchases, creating a durable competitive advantage.

↑Global Distribution Network

A well-developed global retail and e-commerce presence provides broad market access. This extensive network makes it difficult for new entrants to replicate their reach and scale.

↑Product Design and Innovation

Continuous investment in design and product innovation keeps brands relevant and appealing. This ability to adapt to fashion trends and consumer preferences is key to sustained demand.

INVESTMENT RISKS

↓Intense Competition in Luxury

The luxury goods market is highly competitive with established global players. Tapestry faces constant pressure from brands with similar or greater brand recognition and marketing budgets.

↓Economic Sensitivity and Discretionary Spending

Luxury goods are discretionary purchases, making Tapestry vulnerable to economic downturns. A recession or significant slowdown in consumer spending could severely impact sales and profitability.

↓Reliance on Key Brands

The company's performance is heavily dependent on the continued success of its core brands. A decline in popularity or a misstep in brand strategy for one of its major labels could disproportionately affect overall results.

Base case

TPR base case PE valuation

A base case PE valuation for TPR estimates a fair value of about $215.88 per share, against a current price of $147.42. The model assumes 16.5% annual earnings growth, a 45x target PE multiple, and a 10% discount rate.

Intrinsic Value

$215.88

Margin of safety

+31.7%

Expected annual return

+7.9%

Base case assumptions: 16.5% annual earnings growth, 45x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.

This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.

Customize the TPR PE valuation

Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Tapestry, Inc. respond.

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Company Overview

Tapestry, Inc. is a prominent global fashion house specializing in premium accessories and distinct lifestyle brands. It operates internationally, serving customers across the United States, Japan, Greater China, and other markets worldwide. The company's diverse portfolio is structured around three well-known brands: Coach, Kate Spade, and Stuart Weitzman. Tapestry offers an extensive product range catering to women, men, and even includes items for children and home goods. For women, this encompasses a vast selection of luxury accessories, including various handbag styles such as wallets, wristlets, and cosmetic cases, alongside unique novelty items like travel accessories, sketchbooks, and keychains. The collection further features footwear, eyewear, fine jewelry (bracelets, necklaces, rings, and earrings), fragrances, watches, and seasonal apparel, which covers outerwear, ready-to-wear collections, and cold-weather essentials like gloves, scarves, and hats. Men's offerings include a wide array of bags, from business cases and messenger bags to backpacks and totes. Additionally, they can find small leather goods like wallets, card cases, and belts, as well as footwear, timepieces, scents, sunglasses, novelty items, and ready-to-wear clothing. Beyond personal fashion, the company extends its reach to children's footwear, and home goods such as stylish bedding and tableware, alongside stationery and gift items. Tapestry also expands its market presence through licensing agreements. Under the Coach brand, it permits the marketing and distribution of tech and soft accessories, jewelry, watches, eyewear, and fragrances. The Kate Spade brand licenses include tableware, housewares, fashion bedding, tech accessories, watches, sleepwear, eyewear, stationery, gifts, and fragrances. As of July 2, 2022, Tapestry managed a substantial retail footprint, operating 945 Coach stores, 398 Kate Spade stores, and 100 Stuart Weitzman stores. Its products are distributed through various channels, including the company's e-commerce platforms, dedicated concession spaces within other retailers, wholesale partnerships, and a network of independent third-party distributors. Originally established in 1941 as Coach, Inc., the corporation rebranded as Tapestry, Inc. in October 2017. Its corporate headquarters are situated in New York, New York.

Financial Metrics — TPR PE Stock Valuation Data

PE Ratio (TTM)

45.0x

PEG Ratio

n/m

Earnings Yield

2.22%

ROE (TTM)

106.4%

Revenue/Share (TTM)

$38.77

Dividend Yield

1.09%

Debt/Equity

5.75x

Frequently Asked Questions

What is the PE ratio of TPR?

The trailing twelve-month PE ratio of TPR reflects how much investors pay per dollar of Tapestry, Inc.'s earnings. This metric is most useful when compared to Luxury Goods peers and the company's own historical range.

Is TPR overvalued based on PE ratio?

TPR's PE of 45.0x combined with a PEG ratio of -2.87 provides a growth-adjusted perspective. TPR has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Luxury Goods, a DCF analysis may be more appropriate.

How do I value TPR stock using PE ratio?

To value Tapestry, Inc. using PE: (1) Compare the current PE (45.0x) against the Luxury Goods median to assess relative pricing, (2) check the PEG ratio (-2.87) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.

What is the PEG ratio of TPR?

TPR's PEG ratio is -2.87, calculated by dividing the PE ratio (45.0x) by the expected earnings growth rate. Because TPR has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.

Should I use PE ratio or DCF for TPR stock valuation?

PE ratio gives a quick relative read — how TPR is priced versus Luxury Goods peers. DCF provides an absolute value based on projected free cash flows. For TPR, with a strong ROE of 106.4%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.

Learn More

See TPR DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
PE Methodology — Step-by-step guide to PE ratio stock valuation
DCF Methodology — Guide to discounted cash flow analysis
PE Ratio — Understanding the price-to-earnings ratio
Intrinsic Value — How to evaluate stock fair value

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P/E and DCF value TPR with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.

Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.

This is an estimate, not investment advice.