Tapestry, Inc. (TPR) DCF Valuation
TGM's two-stage DCF values Tapestry, Inc. (TPR) between $60.75 and $101.93 depending on assumptions, with a base case of $78.19. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (11.2%) reflects its beta.
What would today's price require?
$150.53 is justified only if free cash flow grows about +30.0% a year (fading to 2.5% long-run) at a 11.2% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 10.5%/yr | 12.2% | $60.75 |
| Base case | 13.5%/yr | 11.2% | $78.19 |
| Optimistic | 16.5%/yr | 10.2% | $101.93 |
| Analyst DCF (FMP) | independent reference — different model | $35.14 | |
Current Price
$150.53
Market-Implied Growth
+30.0%/yr
vs +16.9% 5Y actual
Model Scenario Range
$60.75 – $101.93
model output — not a price target
TPR DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for TPR (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $942.5M · 0.20B shares · net debt $1.3B
Estimated Fair Value
$113.33
-24.7% vs $150.53
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 13.5%/yr FCF growth and 10-year horizon fixed. Green = above today's $150.53; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 9.2% | $142 | $149 | $157 | $166 | $176 |
| 10.2% | $122 | $127 | $132 | $138 | $145 |
| 11.2% | $106 | $109 | $113 | $118 | $123 |
| 12.2% | $92.97 | $95.66 | $98.62 | $102 | $106 |
| 13.2% | $82.47 | $84.54 | $86.81 | $89.29 | $92.03 |
About Tapestry, Inc.
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.
- Sector
- Consumer Cyclical
- Industry
- Luxury Goods
- CEO
- Joanne C. Crevoiserat