Carter's, Inc.

NYSE:CRI Stock Report

Market Cap: US$2.0b

Carter's Valuation

Is CRI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CRI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CRI ($54.84) is trading above our estimate of fair value ($35.43)

Significantly Below Fair Value: CRI is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CRI?

Key metric: As CRI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CRI. This is calculated by dividing CRI's market cap by their current earnings.
What is CRI's PE Ratio?
PE Ratio8.7x
EarningsUS$226.07m
Market CapUS$1.98b

Price to Earnings Ratio vs Peers

How does CRI's PE Ratio compare to its peers?

The above table shows the PE ratio for CRI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.2x
ZGN Ermenegildo Zegna
19.6x11.0%US$2.1b
GIII G-III Apparel Group
7.4x-1.4%US$1.4b
OXM Oxford Industries
42.2x38.0%US$1.3b
KTB Kontoor Brands
19.8x8.5%US$5.0b
CRI Carter's
8.7x-6.1%US$2.0b

Price-To-Earnings vs Peers: CRI is good value based on its Price-To-Earnings Ratio (8.7x) compared to the peer average (22.2x).

Price to Earnings Ratio vs Industry

How does CRI's PE Ratio compare vs other companies in the US Luxury Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
JXJT JX Luxventure
2.4xn/aUS$7.15m
DLAP.Q Delta Apparel
n/an/aUS$7.00
No more companies available in this PE range
CRI 8.7xIndustry Avg. 19.5xNo. of Companies7PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CRI is good value based on its Price-To-Earnings Ratio (8.7x) compared to the US Luxury industry average (19.5x).

Price to Earnings Ratio vs Fair Ratio

What is CRI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CRI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.7x
Fair PE Ratio10x

Price-To-Earnings vs Fair Ratio: CRI is good value based on its Price-To-Earnings Ratio (8.7x) compared to the estimated Fair Price-To-Earnings Ratio (10x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CRI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$54.84
US$56.25
+2.6%
10.0%US$65.00US$50.00n/a4
Dec ’25US$54.57
US$56.25
+3.1%
10.0%US$65.00US$50.00n/a4
Nov ’25US$54.02
US$56.25
+4.1%
10.0%US$65.00US$50.00n/a4
Oct ’25US$65.88
US$58.17
-11.7%
11.8%US$72.00US$50.00n/a6
Sep ’25US$65.90
US$56.17
-14.8%
6.2%US$60.00US$50.00n/a6
Aug ’25US$58.42
US$56.17
-3.9%
6.2%US$60.00US$50.00n/a6
Jul ’25US$61.11
US$69.83
+14.3%
9.2%US$80.00US$60.00n/a6
Jun ’25US$68.40
US$69.83
+2.1%
9.2%US$80.00US$60.00n/a6
May ’25US$68.41
US$71.44
+4.4%
10.0%US$81.10US$60.00n/a7
Apr ’25US$85.60
US$74.50
-13.0%
9.0%US$82.00US$65.00n/a6
Mar ’25US$80.40
US$74.50
-7.3%
9.0%US$82.00US$65.00n/a6
Feb ’25US$77.07
US$70.29
-8.8%
10.3%US$84.00US$60.00n/a7
Jan ’25US$74.89
US$68.71
-8.2%
10.9%US$84.00US$60.00n/a7
Dec ’24US$70.31
US$68.71
-2.3%
10.9%US$84.00US$60.00US$54.577
Nov ’24US$66.46
US$68.71
+3.4%
10.9%US$84.00US$60.00US$54.027
Oct ’24US$69.15
US$70.14
+1.4%
9.5%US$84.00US$62.00US$65.887
Sep ’24US$70.93
US$70.14
-1.1%
9.5%US$84.00US$62.00US$65.907
Aug ’24US$74.65
US$70.14
-6.0%
9.5%US$84.00US$62.00US$58.427
Jul ’24US$72.60
US$68.29
-5.9%
11.0%US$84.00US$60.00US$61.117
Jun ’24US$61.48
US$68.29
+11.1%
11.0%US$84.00US$60.00US$68.407
May ’24US$67.87
US$68.57
+1.0%
10.5%US$84.00US$62.00US$68.417
Apr ’24US$71.92
US$68.57
-4.7%
10.5%US$84.00US$62.00US$85.607
Mar ’24US$75.36
US$69.86
-7.3%
10.4%US$84.00US$62.00US$80.407
Feb ’24US$84.97
US$70.71
-16.8%
11.0%US$84.00US$62.00US$77.077
Jan ’24US$74.61
US$71.29
-4.5%
11.4%US$84.00US$62.00US$74.897
Dec ’23US$73.07
US$71.29
-2.4%
11.4%US$84.00US$62.00US$70.317

Analyst Forecast: Target price is less than 20% higher than the current share price.

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