Tapestry, Inc. (TPR) Stock Valuation — DCF Analysis
Luxury Goods · NYSE
Current Price
$147.42
Intrinsic Value
$248.18
+40.6% margin of safety
COMPETITIVE MOAT
↑Brand Equity and Loyal Customer Base
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 valuation
A base case discounted cash flow model for TPR estimates an intrinsic value of about $248.18 per share, against a current price of $147.42. The model assumes 16.5% annual free cash flow growth, a 10.0% discount rate, and a 17x exit multiple.
Intrinsic Value
$248.18
Margin of safety
+40.6%
Expected annual return
+11.0%
Base case assumptions: 16.5% annual growth, 10.0% discount rate, 17x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the TPR valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Tapestry, Inc. respond.
Open DCF Calculator for TPRCompany 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 Stock Valuation Data
Revenue/Share (TTM)
$38.77
FCF/Share (TTM)
$8.67
ROIC (TTM)
13.3%
ROE (TTM)
106.4%
P/FCF
17.0x
EV/EBITDA
30.8x
FCF Yield
5.89%
Debt/Equity
5.75x
Based on trailing twelve-month data, TPR shows a free cash flow per share of $8.67 and a ROIC of 13.3%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 17.0x and FCF yield of 5.89% are important context metrics when evaluating TPR's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of TPR?
Tapestry, Inc. currently generates $8.67 in free cash flow per share. At the current price of $147.42, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is TPR undervalued?
TPR trades at a P/FCF ratio of 17.0x with a free cash flow yield of 5.89%. This P/FCF is in a moderate range. However, whether TPR is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value TPR stock using DCF?
To perform a DCF valuation on Tapestry, Inc.: (1) Start with the trailing free cash flow per share ($8.67) as the base, (2) project future FCF growth over 5-10 years based on Luxury Goods industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting TPR's risk profile — with a debt-to-equity of 5.75x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to TPR?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Tapestry, Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Luxury Goods trends, then discounting those amounts to today's dollars. TPR's ROIC of 13.3% shows moderate capital returns.
How does WACC affect TPR stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For TPR, with a debt-to-equity ratio of 5.75x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 30.8x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See TPR PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Consumer Cyclical valuationsDCF and P/E value TPR with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair 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.