Using the industry peer median P/E multiple (trailing + forward), Tapestry, Inc. (TPR) has a fair value of $47.71 based on 6 comparable companies in the Luxury Goods industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Tapestry, Inc.TPR | 31,860 | 174.6x | 33.8x |
| Ulta Beauty, Inc.ULTA | 23,439 | 20.4x | 18.3x |
| Darden Restaurants, Inc.DRI | 23,185 | 22.5x | 18.8x |
| PulteGroup, Inc.PHM | 22,574 | 10.6x | 8.7x |
| Williams-Sonoma, Inc.WSM | 21,539 | 20.4x | 21.4x |
| Ralph Lauren CorporationRL | 20,471 | 29.1x | 20.8x |
| NVR, Inc.NVR | 18,276 | 15.0x | 13.2x |
| Industry Median | 20.4x | 18.5x | |
| (*) Profit after tax | 183 | 943 | |
| Equity Value | 3,737 | 17,494 | |
| (/) Outstanding shares | 223 | 223 | |
| Fair Price | $17 | $79 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.