PVH Corp. (PVH)
Valuation Overview•Is PVH Corp. Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
Fragile underlying quality score of 39/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven predominantly by aggressive share repurchases.
PVH struggles with subpar profitability and pressured margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company is facing top-line contraction (-0.3% 3Y CAGR) however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 7.1%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $2.0B | +3.4% | -0.3% | +4.6% | +1.1% | |
| EBITDA | $181.3M | — | -41.1% | — | — | |
| Net Income | $88.0M | -95.8% | -49.8% | — | -26.8% | |
| EPS (Diluted) | $1.90 | -95.0% | -44.1% | — | -22.6% | |
| Free Cash Flow | -$86.0M | -7.5% | — | +2.7% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 57.9% | 58.2% | 57.8% | 55.9% |
| Operating Margin | 7.1% | 8.5% | 9.2% | 7.7% |
| Net Margin | 0.2% | 4.8% | 5.4% | 3.6% |
| FCF Margin | 3.2% | 6.9% | 5.3% | 5.7% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.82 | $2.01 | +10.4% | ||
| Q1'26 | $3.30 | $3.82 | +15.8% | ||
| Q4'25 | $2.54 | $2.83 | +11.4% | ||
| Q3'25 | $1.97 | $2.52 | +27.9% | ||
| Q2'25 | $2.26 | $2.30 | +1.8% | ||
| Q1'25 | $3.19 | $3.27 | +2.5% | ||
| Q4'24 | $2.58 | $3.03 | +17.4% | ||
| Q3'24 | $2.29 | $3.01 | +31.4% |
Total return is +19.1% (1Y), lagging the benchmark by -5.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +13.7% | +4.4% | — |
| 1Y | +19.1% | -5.9% | +0.2% |
| 3YCAGR | -2.0% | -21.8% | +0.5% |
| 5YCAGR | -5.2% | -18.5% | +0.7% |
| 10YCAGR | -2.5% | -16.0% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about PVH Corp. (PVH) valuation, health, and returns.
PVH Corp. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +243.0% upside to DCF intrinsic value of $264.32)
PVH Corp. has multiple valuation anchors: DCF Intrinsic Value: $264.32 | Peer Relative Fair Value: $152.93 | Wall Street Analyst Target: $92.00 (implying +19.4% upside). A convergence of these signals offers higher conviction.
PVH Corp. displays weak financial health with a composite quality score of 39/100, supported by a Altman Z-Score of 1.6 (distress zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 6.1%.
PVH Corp. pays a 0.2% dividend yield, covered by a 30% payout ratio with 0 years of growth, supplemented by a 16.3% buyback yield.
PVH Corp.'s current growth trajectory is Accelerating. The company achieved +3.4% 1Y revenue growth and -95.0% 1Y EPS growth, compared to its 3Y revenue CAGR of -0.3%.
Wall Street consensus is Buy based on 38 analysts, beating EPS expectations in 100% of recent quarters with a 21-quarter streak. The consensus price target represents a +19.4% change from current levels.
Investment risks for PVH Corp. include: -32.0% 1-year max drawdown, high beta (1.36x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 1.36x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.