TPR Value Scorecard - Tapestry, Inc.

Value Scorecard · run 2026-10-18

13 value checks: 12 scored 1 to 5, plus moat evidence

41/60

moderate value score

Earnings & returns

EPS Trend

3/5

Diluted EPS: $3.88 (2023), $3.50 (2024), $0.82 (2025), $7.27 (2026). It ended above 2023 but did not rise in 2 of 3 years; the framework scores that as 3.

ROE Trend

5/5

ROE (net income / common equity): 41.1% (2023), 28.2% (2024), 21.4% (2025), 220.7% (2026). Median 34.6%, lowest 21.4%; the framework scores a median above 20% as 5.

ROIC

5/5

ROIC of 37.9%: operating income of $1.91B divided by $5.05B of capital (total assets $6.69B minus current liabilities $1.65B), fiscal year to Jun 27, 2026, as filed in the 10-K (SEC EDGAR). The framework scores above 20% as 5.

Profit Margins

4/5

Net margin of 19.1%; the framework scores 10-20% as 4; gross margin 76.6%, operating margin 19.8%.

Balance sheet & cash

Debt-to-Equity

1/5

Debt-to-equity of 5.72; the framework scores above 2.5 as 1 (total debt $3.96B, total cash $1.15B).

Free Cash Flow

4/5

Free cash flow (operating cash flow minus capital expenditure): $791.00M (2023), $1.15B (2024), $1.09B (2025), $1.81B (2026). It rose every year but one and ended above 2023; the framework scores that as 4.

Retained Earnings

1/5

Retained earnings, as filed in the 10-Ks (SEC EDGAR): -$1.22B (2023), -$722.20M (2024), -$2.56B (2025), -$3.21B (2026). The latest balance is negative (an accumulated deficit); the framework scores that as 1.

Valuation models

Graham IV

5/5

IV = EPS x (8.5 + 2g) x (4.4 / Y) = $7.27 x (8.5 + 2 x 20.0) x (4.4 / 4.5) = $344.76 (EPS CAGR 44.1% capped at 20%). Current price $120.18; price is 65.1% below the model value.

DCF Value

4/5

FCF/share = $7.055, stage 1 growth = 9.5% for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $34.80, PV of terminal value = $101.47, DCF value = $136.26. Current price $120.18; price is 11.8% below the model value.

Margin of Safety

4/5

Graham value $344.76 (price is 65.1% below the model value); DCF value $136.26 (price is 11.8% below the model value).

Price-to-Book

1/5

P/B of 34.79; the framework scores above 5.0 as 1.

Business quality

Moat Evidence

Not scored

A moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.

Return on capital, each year

Above 15% in 4 of 10 years (2017-2026); lowest -8.9%, highest 37.9%.

Gross margin, each year

Between 65.3% and 77.8% over 10 years (a range of 12.5 points).

Competition, in the company’s own words · 10-K filed Aug 13, 2026

The Company faces intense competition from many other brands in the product lines and markets that we participate. In varying degrees, depending on the product category involved, we compete on the basis of style, price, customer service, quality, brand prestige and recognition, among others. Over the last decade, these brands have grown and are expected to continue to grow, encouraging the entry of new competitors

The opening of the company’s “COMPETITION” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.

Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.

Capital Allocation

4/5

Capital allocation, 2023-2026: dividends or buybacks paid in every year (pass); $5.51B paid out against $4.84B of free cash flow (fail: paid out more than free cash flow); total debt $3.29B to $3.95B, up 20.1%, 1.9x EBITDA (pass: at most 2x EBITDA); shares outstanding 0.23B to 0.20B, down 11.9% (pass). 3 of 4 tests passed; the framework scores that as 4.

Filings

Company notices to the SEC

Not scored

Three kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.

These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.

How the Graham and DCF values were calculated

  Graham Formula:
    IV = EPS x (8.5 + 2g) x (4.4 / Y)
    EPS = $7.27, g = 20.0%, Y = 4.5
    g capped at 20.0% (3-year EPS CAGR was 44.1%)
    IV = $344.76
    Current price $120.18 vs Graham value $344.76 — price is 65.1% below the model value.

  DCF:
    FCF/share = $7.055
    Stage 1 growth = 9.5% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
      Y1: $7.725 → PV $7.023
      Y2: $8.459 → PV $6.991
      Y3: $9.262 → PV $6.959
      Y4: $10.142 → PV $6.927
      Y5: $11.106 → PV $6.896
    Stage 1 PV sum = $34.80
    Terminal value at end of Y5 = $163.42
    PV of terminal value = $101.47
    DCF value = $136.26
    Current price $120.18 vs DCF value $136.26 — price is 11.8% below the model value.

Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $120.18. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.

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