TPR
Tapestry, Inc.Consumer Cyclical / Luxury GoodsINTACTTapestry, Inc. provides accessories and lifestyle brand products in North America, Greater China, rest of Asia, and internationally. The company operates in two segments, Coach and Kate Spade. It offers handbags, fashion designs, business cases, computer bags, messenger style bags, backpacks, travel bags, and totes; accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories, including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, technology accessories, gifting, straps, and charms. The company also provides women's and men's footwear, which casual and dress shoes, boots, sneakers, and sandals; and other products which includes outerwear, ready-to-wear, jewelry, watches, eyewear, fragrance, scarves, hats, gloves, and other products. It offers its products through retail and outlet stores, brand e-commerce sites, and concession shop-in-shops, as well as third-party digital platforms, including marketplaces. The company was formerly known as Coach, Inc. and changed its name to Tapestry, Inc. in October 2017. Tapestry, Inc. was founded in 1941 and is headquartered in New York, New York.
Price vs. Intrinsic Value Corridor
Modest Value ($118.49 vs $147.88 DCF)Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.
2-Stage Discounted Cash Flow (DCF) Workbench
Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.
| Year | Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | Yr 6 | Yr 7 | Yr 8 | Yr 9 | Yr 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Projected FCF ($M) | $1,539 | $1,691 | $1,858 | $2,042 | $2,244 | $2,345 | $2,451 | $2,561 | $2,677 | $2,797 |
| Present Value (PV) | $1,412 | $1,423 | $1,435 | $1,447 | $1,459 | $1,399 | $1,341 | $1,285 | $1,232 | $1,182 |
Benjamin Graham & Buffett Value Models
Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.
Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.
Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.
True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.
Reverse DCF: Market Growth Expectation
MODEST BARRIERAt the current price of $118.49, the market is assuming the business will compound Free Cash Flow at 3.4% per year for the next decade with a 9% hurdle rate.
Surveil TPR with Mathematical Margin of Safety Rules
Set non-negotiable floor rules for Tapestry, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.
ROIC > 15% • Margin > 15% • D/E < 0.5x
Current Margin 19.8% • Floor > 10%
Altman-Z > 2.6 • Current Ratio > 1.5x
Frequently Asked Questions: Tapestry, Inc. (TPR) Intrinsic Valuation
Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Tapestry, Inc..
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