VF Corporation (VFC): Assessing Valuation After Strong Q2 Earnings and Renewed Rate Cut Hopes

VF Corporation (VFC) shares climbed nearly 11% after the company posted strong second quarter fiscal 2026 earnings. Optimism also increased around a possible Federal Reserve rate cut this December.

See our latest analysis for V.F.

After a rocky start to the year, V.F’s 1-day share price return of 10.8% and a 13.75% gain over the past week reflect a real shift in momentum. While its year-to-date return is still in the red and the 1-year total shareholder return sits at -18.9%, investors are clearly re-evaluating the long-term story following upbeat earnings and renewed hopes for a rate cut. This suggests the recent rally could signal a change in risk perception as well as growth prospects.

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With shares rebounding sharply and optimism building, the big question remains: Is V.F still trading at a bargain after the jump, or is the market already baking in brighter prospects? Could there be more upside for patient investors?

Most Popular Narrative: Fairly Valued

V.F’s last close price of $16.21 lines up closely with the narrative’s fair value estimate of $16.05, suggesting little disconnect in market and narrative views. This scenario puts the stock near fair value in the eyes of analysts, setting up for deeper scrutiny of the drivers behind this consensus.

The analysts have a consensus price target of $15.19 for V.F based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $40.0, and the most bearish reporting a price target of just $10.0.

Read the complete narrative.

Curious about why the narrative’s fair value sits so close to the market price? The hidden ingredient is a tug-of-war between profit growth forecasts and a much lower future profit multiple. The key to the story lies in assumptions you will not want to miss. See exactly what is behind this balance.

Result: Fair Value of $16.05 (ABOUT RIGHT)

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

However, persistent weakness at Vans and ongoing execution risks could challenge the case for sustained margin improvement and steady profit growth at V.F.

Find out about the key risks to this V.F narrative.

Another View: Price Ratio Risks Stand Out

Looking at valuation from a price-to-earnings angle, V.F trades at 68.7 times earnings. That is well above both the US Luxury industry’s 19.7 and its peer average of 14.2. It is also nearly three times its fair ratio of 26.3. This suggests the market is putting a premium on the stock, increasing the risk if growth expectations are not met. Could this premium be justified, or is it a warning signal for investors?

See what the numbers say about this price — find out in our valuation breakdown.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out V.F for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 918 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own V.F Narrative

If you want to weigh the numbers yourself or have your own investment angle, it is easy to assemble a narrative in just minutes. Do it your way.

A great starting point for your V.F research is our analysis highlighting 3 key rewards and 3 important warning signs 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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