Victoria's Secret (VSCO): Assessing Valuation After Recent Share Price Momentum

Victoria's Secret (VSCO) shares have seen solid momentum over the past month, rising roughly 11%. Investors are watching closely as the retailer continues its turnaround efforts and adapts to changing market dynamics in the apparel industry.

See our latest analysis for Victoria's Secret.

The recent momentum in Victoria's Secret shares adds to a longer, more turbulent track record for the brand. Although the 1-year total shareholder return is close to flat, signaling the long-term turnaround is still in its early stages, short bursts such as this month's rally show investor optimism may be building as the company adapts.

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Against this backdrop of mixed performance, is Victoria's Secret currently undervalued and offering hidden value? Or have markets already priced in any potential future growth, leaving little room for upside?

Most Popular Narrative: 17% Overvalued

Victoria's Secret's most widely followed narrative puts fair value at $24.90 a share, while the last close was $29.20, well above the estimate. The narrative sets the stage for a deeper look into what investors are pricing in and why some think optimism has gone too far.

The ongoing transformation of Victoria's Secret toward inclusivity, body positivity, and enhanced storytelling continues to resonate with younger customers and drive new customer acquisition, especially among the 18-44 demographic, supporting sustained revenue and market share growth.

Read the complete narrative.

Want to know what bold financial assumptions lie behind this pricing call? There’s one forecast, buried in analyst calculations, that could change how you view the brand. Why are future margins and a premium profit multiple at the center of this story? See what the analysts believe could be just around the corner.

Result: Fair Value of $24.90 (OVERVALUED)

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

However, ongoing tariff pressures and persistent reliance on brick-and-mortar stores could challenge Victoria's Secret's progress. These factors could potentially limit gains if not addressed effectively.

Find out about the key risks to this Victoria's Secret narrative.

Another View: What Do Multiples Say?

Switching gears to valuation based on earnings multiples, Victoria's Secret trades at 15.5 times earnings, which is below both the industry average (17.3x) and its peer average (17.5x). However, this sits above its fair ratio of 13.4x, an indicator the market could eventually move toward. While this hints at relative value compared to rivals, it also signals possible downside risk if sentiment cools. Could this gap be a hidden opportunity, or is it a sign to tread carefully?

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

Build Your Own Victoria's Secret Narrative

If you see Victoria's Secret differently or want to dive into the numbers yourself, it only takes a few minutes to shape your own perspective. So why not Do it your way?

A great starting point for your Victoria's Secret research is our analysis highlighting 2 key rewards and 2 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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