As of June 4, 2025, Buckle Inc's estimated intrinsic value ranges from $41.94 to $83.08 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $83.08 | +93.5% |
| Discounted Cash Flow (5Y) | $78.77 | +83.5% |
| Dividend Discount Model (Multi-Stage) | $48.04 | +11.9% |
| Dividend Discount Model (Stable) | $41.94 | -2.3% |
| Earnings Power Value | $71.39 | +66.3% |
Is Buckle Inc (BKE) undervalued or overvalued?
With the current market price at $42.94, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Buckle Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.68 | 0.94 |
| Cost of equity | 7.0% | 10.1% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 24.0% | 24.1% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 5.4% | 7.0% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $79 | $3,763M | 75.7% |
| 10-Year Growth | $83 | $3,983M | 58.3% |
| 5-Year EBITDA | $51 | $2,317M | 60.6% |
| 10-Year EBITDA | $60 | $2,807M | 40.8% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $206M |
| Discount Rate (WACC) | 7.0% - 5.4% |
| Enterprise Value | $2,953M - $3,818M |
| Net Debt | $(267)M |
| Equity Value | $3,220M - $4,085M |
| Outstanding Shares | 51M |
| Fair Value | $63 - $80 |
| Selected Fair Value | $71.39 |
| Metric | Value |
|---|---|
| Market Capitalization | $2197M |
| Enterprise Value | $1930M |
| Trailing P/E | 11.24 |
| Forward P/E | 10.99 |
| Trailing EV/EBITDA | 5.95 |
| Current Dividend Yield | 908.37% |
| Dividend Growth Rate (5Y) | 11.42% |
| Debt-to-Equity Ratio | 1.17 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $24.92 |
| Discounted Cash Flow (5Y) | 25% | $19.69 |
| Dividend Discount Model (Multi-Stage) | 20% | $9.61 |
| Dividend Discount Model (Stable) | 15% | $6.29 |
| Earnings Power Value | 10% | $7.14 |
| Weighted Average | 100% | $67.65 |
Based on our comprehensive valuation analysis, Buckle Inc's weighted average intrinsic value is $67.65, which is approximately 57.6% above the current market price of $42.94.
Key investment considerations:
Given these factors, we believe Buckle Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.