As of April 3, 2026, Abercrombie & Fitch Co has a Discounted Cash Flow (DCF) derived fair value of $225.06 per share. With the current market price at $92.25, this represents a potential upside of 144.0%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $194.09 |
| DCF Fair Value (10-year) | $225.06 |
| Potential Upside (5-year) | 110.4% |
| Potential Upside (10-year) | 144.0% |
| Discount Rate (WACC) | 5.8% - 8.6% |
Revenue is projected to grow from $5266 million in 01-2026 to $8176 million by 01-2036, representing a compound annual growth rate of approximately 4.5%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 01-2026 | 5266 | 6% |
| 01-2027 | 5526 | 5% |
| 01-2028 | 5692 | 3% |
| 01-2029 | 5990 | 5% |
| 01-2030 | 6356 | 6% |
| 01-2031 | 6732 | 6% |
| 01-2032 | 7037 | 5% |
| 01-2033 | 7413 | 5% |
| 01-2034 | 7642 | 3% |
| 01-2035 | 8015 | 5% |
| 01-2036 | 8176 | 2% |
Net profit margin is expected to improve from 10% in 01-2026 to 10% by 01-2036, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 01-2026 | 515 | 10% |
| 01-2027 | 540 | 10% |
| 01-2028 | 557 | 10% |
| 01-2029 | 586 | 10% |
| 01-2030 | 622 | 10% |
| 01-2031 | 658 | 10% |
| 01-2032 | 688 | 10% |
| 01-2033 | 725 | 10% |
| 01-2034 | 747 | 10% |
| 01-2035 | 784 | 10% |
| 01-2036 | 800 | 10% |
with a 5-year average of $141 million. Projected CapEx is expected to maintain at approximately 3% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 01-2027 | 156 |
| 01-2028 | 172 |
| 01-2029 | 177 |
| 01-2030 | 186 |
| 01-2031 | 192 |
| 01-2032 | 202 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 8 |
| Days Inventory | 111 |
| Days Payables | 70 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2027 | 889 | 216 | 175 | (7) | 504 |
| 2028 | 928 | 222 | 181 | 22 | 503 |
| 2029 | 973 | 234 | 190 | 22 | 527 |
| 2030 | 1030 | 248 | 202 | 20 | 560 |
| 2031 | 1086 | 263 | 214 | 28 | 581 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 194.09 | 110.4% |
| 10-Year DCF (Growth) | 225.06 | 144.0% |
| 5-Year DCF (EBITDA) | 152.80 | 65.6% |
| 10-Year DCF (EBITDA) | 186.50 | 102.2% |
Is Abercrombie & Fitch Co (ANF) a buy or a sell? Abercrombie & Fitch Co is definitely a buy. Based on our DCF analysis, Abercrombie & Fitch Co (ANF) appears to be significantly undervalued with upside potential of 144.0%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $92.25.