Assessing Levi Strauss (LEVI) Valuation After Recent Share Price Pullback

Levi Strauss (LEVI) shares have been in focus after the company posted its quarterly financial results. Investors are evaluating how a slight dip in daily and monthly performance compares with double-digit gains over the past year and three years.

See our latest analysis for Levi Strauss.

Shares of Levi Strauss have cooled off recently, with a 1-month share price return of -18.2% following a steady climb earlier this year. Still, the stock is holding up well overall, with total shareholder return up 21% in the past year and over 42% in the last three years. This suggests long-term momentum remains positive while short-term sentiment has dipped.

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With shares now trading at a notable discount to analyst price targets, the question for investors is clear: Is Levi Strauss undervalued at current levels, or is the market already factoring in all of its future growth potential?

Most Popular Narrative: 25% Undervalued

Levi Strauss closed at $19.99 while the most popular narrative sees fair value perched over $26, suggesting a notable gap investors are watching closely. With shares trading well below this calculated value, attention turns to the core strategies powering Levi Strauss's momentum and margin outlook.

The brand's premium positioning is reinforced by collaborations (e.g., Beyoncé, NIKE, Sacai), fabric and fit innovation, and increasing full-price sell-through. All of these support higher average selling prices and margin expansion while capitalizing on consumer willingness to pay more for quality and sustainable brands.

Read the complete narrative.

What’s driving this bold valuation? Under the surface are ambitious assumptions around rising profitability, international expansion, and a future price multiple that outpaces the sector. The real intrigue is how these competing ambitions balance out in the full narrative. Discover which ingredient tips the scale.

Result: Fair Value of $26.79 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent tariff pressures and Levi's reliance on denim trends could challenge future growth if consumer preferences or global trade conditions shift unexpectedly.

Find out about the key risks to this Levi Strauss narrative.

Build Your Own Levi Strauss Narrative

If you see things differently or want to chart your own course, creating a personal view of Levi Strauss takes just a few minutes. So why not Do it your way?

A great starting point for your Levi Strauss research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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