Levi’s (LEVI): Valuation Check After Beyoncé Campaign Boosts Sales, Profits and Brand Momentum
Levi Strauss (LEVI) is riding a fresh wave of attention after its global campaign with Beyonce helped lift sales and profits, especially in womenswear, giving the stock a meaningful boost this year.
See our latest analysis for Levi Strauss.
That momentum is starting to show up in the numbers too, with Levi’s share price at $22.27 and a strong year to date share price return underpinning a solid multi year total shareholder return trend, suggesting confidence is building rather than fading.
If Beyonce’s denim moment has you thinking bigger about brand driven growth stories, it is a good time to explore fast growing stocks with high insider ownership.
With Levi’s trading at a double digit discount to analyst targets and annual earnings still climbing, the question now is whether investors are getting in early on a multi year run or if the market has already priced in the growth.
Most Popular Narrative Narrative: 16.9% Undervalued
With Levi Strauss last closing at $22.27 against a narrative fair value near the high twenties, the story hinges on steady, margin led earnings growth.
In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 15.7x on those 2028 earnings, down from 20.3x today. This future PE is lower than the current PE for the US Luxury industry at 19.8x.
Want to see why a more modest earnings multiple still supports a higher valuation, and which growth and margin assumptions quietly power that view, click through.
Result: Fair Value of $26.79 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, there are still clear watchpoints, including tariff driven margin pressure and slower Asian growth, that could quickly challenge the bullish long term narrative.
Find out about the key risks to this Levi Strauss narrative.
Build Your Own Levi Strauss Narrative
If you see the story differently or want to dig into the numbers yourself, you can build a personalized narrative in minutes: Do it your way.
A great starting point for your Levi Strauss research is our analysis highlighting 5 key rewards and 1 important warning sign 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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