3 models fit Tapestry Inc. Common Stock and they disagree: 1 of 3 land within 15% of the average.
Two or more of our models back this value.
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Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionTapestry Inc. Common Stock (TPR)
Fair value (3 models)
$97.97
ACCE price target
$125
Rating
Overvalued
Horizon
12 months
Fair value published on 20 Oct 2026, 16:04 CEST; previously $100 since 16 Oct 2026, 00:00 CEST.
ACCE price target published on 25 Sept 2026, 00:00 CEST.
Rating published on 20 Oct 2026, 16:04 CEST.
Price used: $110 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
12.7% above
-11.2% to fair value
ACCE score
65
out of 100
Analysts
77% buy
22 covering
P/E
15.7x
forward 14.2x
1-year return
-3.9%
Dividend yield
1.39%
Tapestry Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Tapestry sells handbags, leather goods, footwear and accessories under Coach, Kate Spade and Stuart Weitzman, with Coach carrying most of the weight. Its edge is a brand-led model with a 76.6% gross margin and a 19.8% operating margin, which is unusually high for a company selling accessories at scale. Revenue is growing 8.9%, and the bigger question for a deeper look is whether Coach's recovery and the mix shift toward higher-margin direct sales can keep lifting growth without the margin profile slipping. At 16.1x trailing and 13.2x forward earnings, the stock is priced below what its growth and margins would suggest on a simple comparison, though that gap needs testing against the risk that aspirational luxury demand softens. The score of 66/100 and the absence of any index membership suggest the market has not fully priced the name, which makes it worth a closer look.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Leverage spike and FCF coverage
Debt/Equity 5.72 is extreme for a cyclical luxury retailer. FCF of $1.4B covers debt service, but leverage leaves little margin for demand shock or rate stress.
high
Earnings growth unsustainable
YoY earnings +73.7% against 5-year revenue CAGR of +1.6% signals one-time gains or margin expansion, not organic growth. QoQ revenue -23.2% suggests deceleration.
moderate
Score deterioration and insider selling
ACCE score fell 6 points in 90 days (71 to 65). Insiders sold $4.35M with zero buys. M-score at 32 is notably weak versus other pillars.
moderate
Short interest elevated
9.4% short interest is material for a $23.1B cap. Combined with score decline and leverage, suggests investor skepticism on sustainability.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue accelerated to 8.9% year-over-year growth, well above the 1.6% five-year average, signaling a meaningful business inflection.
Free cash flow of 1.4B supports a 6.1% yield while the company reduced share count 5.5%, compounding shareholder value.
Why it could disappoint
Consensus fair value of 101.77 sits 12.5% below the current 116.24 share price, suggesting limited upside at current levels.
Debt to equity of 5.72 is extreme, and the 197.1% ROE reflects a thin equity base from buybacks rather than operating strength.
The stock's implied perpetual cash flow growth of 6.5% falls short of the 8.9% recent pace, pricing in a sharp deceleration.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 5, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where TPR's valuation models land
Price
$110.37
Model fair value
$97.97
Model range
$65.51 to $144
Fair value $97.97
Price $110
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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