Abercrombie & Fitch Co. (ANF) DCF Valuation
Transparent DCF models put Abercrombie & Fitch Co. (ANF)'s fair value in a range of $124.20 – $233.94 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $83.67 sits below that range — by these conservative assumptions it screens as potentially undervalued.
Reverse DCF: at today's $83.67, the market is pricing in roughly -1.2%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +7.1%. The price assumes a slowdown from its track record — a potential value signal if growth holds.
Current Price
$83.67
Fair-Value Range
$124.20 – $233.94
Market-Implied Growth
-1.2%/yr
vs +7.1% 5Y actual
ANF DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $308.6M · 0.04B shares · net cash $518.3M
Estimated Fair Value
$124.20
+48.4% vs $83.67
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $83.67; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $152 | $159 | $167 | $177 | $190 |
| 9.0% | $132 | $137 | $142 | $149 | $157 |
| 10.0% | $117 | $120 | $124 | $129 | $134 |
| 11.0% | $105 | $107 | $110 | $114 | $117 |
| 12.0% | $95.40 | $97.32 | $99.44 | $102 | $104 |
About Abercrombie & Fitch Co.
Abercrombie & Fitch Co. functions as a prominent specialty retailer of apparel and lifestyle goods, operating through its various subsidiary entities. The company's business is structured into two core segments: Hollister and Abercrombie. Its offerings encompass a wide array of clothing, personal care products, and accessories designed for men, women, and children, distributed across a portfolio of distinct brands, including Hollister, Abercrombie & Fitch, abercrombie kids, Moose, Seagull, Gilly Hicks, and Social Tourist. As of January 29, 2022, the company maintained a global footprint of roughly 729 physical retail locations, spanning regions like Europe, Asia, Canada, the Middle East, and the United States. Sales are conducted through its proprietary retail outlets, various third-party wholesale, franchise, and licensing arrangements, and its comprehensive digital e-commerce channels. With origins dating back to 1892, Abercrombie & Fitch Co.'s corporate headquarters are situated in New Albany, Ohio.
- Sector
- Consumer Cyclical
- Industry
- Apparel - Retail
- CEO
- Fran Horowitz