We’ve recently updated our valuation analysis.

Foot Locker Valuation

Is FL 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 FL?

Other financial metrics that can be useful for relative valuation.

FL 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/Revenue0.7x
Enterprise Value/EBITDA7.2x
PEG Ratio2.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average35.8x
VSCO Victoria's Secret
7.9x8.7%US$3.7b
AEO American Eagle Outfitters
24.5x39.3%US$3.0b
URBN Urban Outfitters
15.5x16.6%US$2.6b
GPS Gap
95.2x55.4%US$5.2b
FL Foot Locker
8.5x3.9%US$3.6b

Price-To-Earnings vs Peers: FL is good value based on its Price-To-Earnings Ratio (8.5x) compared to the peer average (35.8x).


Price to Earnings Ratio vs Industry

How does FL's PE Ratio compare vs other companies in the US Specialty Retail Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.4%
n/an/an/a

Price-To-Earnings vs Industry: FL is expensive based on its Price-To-Earnings Ratio (8.5x) compared to the US Specialty Retail industry average (8x)


Price to Earnings Ratio vs Fair Ratio

What is FL'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.

FL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.5x
Fair PE Ratio10.4x

Price-To-Earnings vs Fair Ratio: FL is good value based on its Price-To-Earnings Ratio (8.5x) compared to the estimated Fair Price-To-Earnings Ratio (10.4x).


Share Price vs Fair Value

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

Below Fair Value: FL ($38.65) is trading below our estimate of fair value ($269.35)

Significantly Below Fair Value: FL 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 FL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$38.65
US$38.16
-1.3%
9.6%US$47.00US$31.00n/a18
Nov ’23US$32.20
US$37.66
+17.0%
11.3%US$47.00US$27.00n/a18
Oct ’23US$31.13
US$38.66
+24.2%
10.0%US$47.00US$29.00n/a18
Sep ’23US$36.64
US$38.66
+5.5%
10.0%US$47.00US$29.00n/a18
Aug ’23US$28.65
US$30.32
+5.8%
20.1%US$50.00US$20.00n/a19
Jul ’23US$25.13
US$31.39
+24.9%
18.1%US$50.00US$24.00n/a18
Jun ’23US$32.59
US$32.32
-0.8%
17.9%US$50.00US$24.00n/a19
May ’23US$29.31
US$32.58
+11.2%
24.3%US$61.00US$23.00n/a19
Apr ’23US$29.42
US$33.32
+13.2%
25.4%US$61.00US$23.00n/a19
Mar ’23US$29.23
US$36.32
+24.2%
34.6%US$73.00US$23.00n/a19
Feb ’23US$44.45
US$62.10
+39.7%
20.2%US$87.00US$42.00n/a20
Jan ’23US$43.63
US$65.95
+51.2%
16.8%US$87.00US$45.00n/a19
Dec ’22US$44.59
US$67.42
+51.2%
14.4%US$87.00US$45.00n/a19
Nov ’22US$48.53
US$71.05
+46.4%
15.8%US$91.00US$45.00US$32.2019
Oct ’22US$46.65
US$74.63
+60.0%
13.8%US$91.00US$45.00US$31.1319
Sep ’22US$57.13
US$76.00
+33.0%
10.2%US$91.00US$65.00US$36.6419
Aug ’22US$57.06
US$70.10
+22.9%
13.9%US$82.00US$37.00US$28.6520
Jul ’22US$62.48
US$70.11
+12.2%
14.2%US$82.00US$37.00US$25.1319
Jun ’22US$63.67
US$69.50
+9.2%
14.3%US$82.00US$37.00US$32.5918
May ’22US$58.98
US$59.83
+1.4%
15.2%US$75.00US$37.00US$29.3118
Apr ’22US$56.75
US$59.05
+4.1%
14.5%US$75.00US$37.00US$29.4219
Mar ’22US$51.65
US$55.55
+7.6%
13.7%US$75.00US$37.00US$29.2320
Feb ’22US$44.68
US$46.29
+3.6%
13.7%US$58.00US$29.00US$44.4521
Jan ’22US$40.44
US$43.27
+7.0%
12.8%US$55.00US$29.00US$43.6322
Dec ’21US$39.00
US$43.17
+10.7%
11.5%US$52.00US$29.00US$44.5924
Nov ’21US$36.88
US$35.84
-2.8%
17.6%US$52.00US$25.00US$48.5325

Analyst Forecast: Target price is lower than the current share price.


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