We’ve recently updated our valuation analysis.

Levi Strauss Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

LEVI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.3x
Enterprise Value/EBITDA8.2x
PEG Ratio1.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LEVI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.2x
CPRI Capri Holdings
8.3x3.7%US$6.9b
RL Ralph Lauren
13.7x10.5%US$7.1b
COLM Columbia Sportswear
16x9.7%US$5.5b
TPR Tapestry
10.8x9.2%US$8.9b
LEVI Levi Strauss
11.1x9.8%US$6.3b

Price-To-Earnings vs Peers: LEVI is good value based on its Price-To-Earnings Ratio (11.1x) compared to the peer average (12.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.8%
n/an/an/a

Price-To-Earnings vs Industry: LEVI is expensive based on its Price-To-Earnings Ratio (11.1x) compared to the US Luxury industry average (10.7x)


Price to Earnings Ratio vs Fair Ratio

What is LEVI'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.

LEVI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.1x
Fair PE Ratio11x

Price-To-Earnings vs Fair Ratio: LEVI is expensive based on its Price-To-Earnings Ratio (11.1x) compared to the estimated Fair Price-To-Earnings Ratio (11x).


Share Price vs Fair Value

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

Below Fair Value: LEVI ($16.11) is trading below our estimate of fair value ($20.65)

Significantly Below Fair Value: LEVI is trading below fair value by more than 20%.


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 LEVI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$16.11
US$20.17
+25.2%
14.1%US$27.00US$16.00n/a13
Nov ’23US$15.18
US$20.17
+32.9%
14.1%US$27.00US$16.00n/a13
Oct ’23US$14.47
US$25.21
+74.2%
16.2%US$33.00US$19.00n/a13
Sep ’23US$17.22
US$25.21
+46.4%
16.0%US$33.00US$19.00n/a13
Aug ’23US$19.12
US$25.37
+32.7%
16.0%US$33.00US$19.00n/a13
Jul ’23US$16.01
US$29.60
+84.9%
16.2%US$40.00US$23.00n/a13
Jun ’23US$18.37
US$29.91
+62.8%
15.7%US$40.00US$23.00n/a13
May ’23US$18.11
US$30.54
+68.6%
13.7%US$40.00US$25.00n/a13
Apr ’23US$19.83
US$31.69
+59.8%
10.9%US$40.00US$28.00n/a13
Mar ’23US$21.04
US$32.08
+52.5%
11.2%US$40.00US$28.00n/a13
Feb ’23US$22.96
US$32.42
+41.2%
10.4%US$40.00US$28.00n/a13
Jan ’23US$25.03
US$34.88
+39.4%
7.2%US$40.00US$31.00n/a13
Dec ’22US$24.63
US$34.96
+41.9%
7.2%US$40.00US$31.00n/a13
Nov ’22US$26.79
US$34.96
+30.5%
7.2%US$40.00US$31.00US$15.1813
Oct ’22US$25.00
US$34.95
+39.8%
6.8%US$40.00US$31.00US$14.4713
Sep ’22US$26.71
US$34.87
+30.5%
6.6%US$40.00US$31.00US$17.2213
Aug ’22US$27.52
US$34.94
+26.9%
5.8%US$40.00US$32.00US$19.1211
Jul ’22US$27.48
US$31.56
+14.8%
9.2%US$36.00US$28.00US$16.019
Jun ’22US$27.51
US$31.33
+13.9%
8.4%US$36.00US$28.00US$18.379
May ’22US$28.86
US$30.67
+6.3%
6.7%US$34.00US$28.00US$18.119
Apr ’22US$23.69
US$25.78
+8.8%
5.7%US$29.00US$24.00US$19.839
Mar ’22US$23.58
US$25.00
+6.0%
4.2%US$27.00US$24.00US$21.049
Feb ’22US$19.68
US$24.70
+25.5%
5.4%US$27.00US$22.00US$22.9610
Jan ’22US$20.08
US$21.30
+6.1%
10.1%US$25.00US$18.00US$25.0310
Dec ’21US$18.78
US$19.70
+4.9%
17.4%US$25.00US$11.00US$24.6310
Nov ’21US$15.78
US$19.40
+22.9%
18.2%US$25.00US$11.00US$26.7910

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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