Levi Strauss (LEVI) Valuation Takes Center Stage After Strong Earnings and Upgraded 2025 Outlook

Levi Strauss (LEVI) impressed investors with stronger-than-expected third-quarter results and followed up by raising its revenue and organic growth outlook for 2025. The updates signal improving momentum for the jeans maker.

See our latest analysis for Levi Strauss.

Levi Strauss caught a wave of investor optimism this year, not just with raised guidance and a fresh dividend, but also through consistent shareholder returns and an ongoing buyback program. The stock has posted a standout year-to-date share price return of 21.8%, and its three-year total shareholder return of 54% shows how much momentum can build when growth stories and market sentiment align.

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With shares trading at a discount to analyst targets and robust earnings momentum in play, investors must now ask if Levi Strauss is still undervalued or if the current price fully reflects the company's brighter outlook and growth prospects.

Most Popular Narrative: 19.8% Undervalued

With Levi Strauss trading at $21.21, the most widely followed narrative assigns a fair value notably higher, implying substantial upside from current levels. For investors watching the price gap narrow, the following quote highlights a major driver behind the ongoing debate on valuation.

The brand's premium positioning is reinforced by collaborations (e.g., Beyoncé, NIKE, Sacai), fabric/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.

How do ambitious margin targets and a shift in consumer buying habits create so much headroom in the fair value? The dominant narrative projects a level of brand pricing power and earnings momentum that could surprise even seasoned bulls. Want to uncover which premium strategies, not just growth, push analyst numbers this high? The full narrative backs up its thesis with bold projections and uncommon margin assumptions. Explore what sets these forecasts apart.

Result: Fair Value of $26.46 (UNDERVALUED)

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

However, changes in denim trends or tariffs could threaten Levi Strauss’s profit growth outlook and test the conviction behind today's optimistic forecasts.

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

Build Your Own Levi Strauss Narrative

If you have a different perspective or like to dig deeper into the numbers, you can shape your own Levi Strauss story in just a few minutes, starting with 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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