As of April 3, 2026, Urban Outfitters Inc's estimated intrinsic value ranges from $42.59 to $103.43 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $103.43 | +60.2% |
| Discounted Cash Flow (5Y) | $87.65 | +35.7% |
| Dividend Discount Model (Multi-Stage) | $42.59 | -34.0% |
| Dividend Discount Model (Stable) | $49.98 | -22.6% |
| Earnings Power Value | $45.83 | -29.0% |
Is Urban Outfitters Inc (URBN) undervalued or overvalued?
With the current market price at $64.57, the stock appears to be moderately 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 Urban Outfitters 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 | 0.88 | 1.59 |
| Cost of equity | 7.9% | 13.8% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 22.8% | 23.8% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 5.9% | 8.8% |
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 | $88 | $7,493M | 73.9% |
| 10-Year Growth | $103 | $8,908M | 57.4% |
| 5-Year EBITDA | $70 | $5,929M | 67.0% |
| 10-Year EBITDA | $87 | $7,399M | 48.8% |
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 | $264M |
| Discount Rate (WACC) | 8.8% - 5.9% |
| Enterprise Value | $3,003M - $4,481M |
| Net Debt | $(369)M |
| Equity Value | $3,372M - $4,851M |
| Outstanding Shares | 90M |
| Fair Value | $38 - $54 |
| Selected Fair Value | $45.83 |
| Metric | Value |
|---|---|
| Market Capitalization | $5792M |
| Enterprise Value | $5423M |
| Trailing P/E | 12.46 |
| Forward P/E | 12.07 |
| Trailing EV/EBITDA | 5.50 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 1.15 |
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% | $31.03 |
| Discounted Cash Flow (5Y) | 25% | $21.91 |
| Dividend Discount Model (Multi-Stage) | 20% | $8.52 |
| Dividend Discount Model (Stable) | 15% | $7.50 |
| Earnings Power Value | 10% | $4.58 |
| Weighted Average | 100% | $73.54 |
Based on our comprehensive valuation analysis, Urban Outfitters Inc's intrinsic value is $73.54, which is approximately 13.9% above the current market price of $64.57.
Key investment considerations:
Given these factors, we believe Urban Outfitters Inc is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.