Stitch Fix (SFIX:NAS) Fundamental Valuation Report

Fundamental Valuation Report

Stitch Fix(SFIX:NAS)

Consumer Cyclical:Specialty Retail

This Report was generated using the valuation tools available on For a free 30 day trial click here.

Close Price/Date
$27.50 (USD) 09/28/2020

Weighted Valuation
$26.57 (USD)

Overall Rating
Fairly valued to slightly Overvalued by 3.4%

Valuation Models Adjusted Book Value: $27.50 (USD)
Multiples: $25.16 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Overvalued on a Comparable Valuation
Asset: Fairly valued on an Asset Valuation
According to Analyst consensus at $32.50 this stock is Undervalued

Company Overview (SFIX:NAS USD)

Price 27.50
Range 26.54 – 27.57
52 week 11.46 – 31.38
Open 26.91
Vol / Avg. 2.91M/3.61M
Mkt cap 2.69B
P/E 99.68
Div/yield 0.00/0.00
EPS -0.66
Shares 104.27M
Beta 0.00

Company Description

Stitch Fix Inc offers personal style service for men and women. The company engages in delivering one-to-one personalization to clients through the combination of data science and human judgment. It provides a shipment service called A FIX where the stylist’s hand selects items from several merchandises with analysis of client and merchandise data to provide a personalized shipment of apparel, shoes, and accessories suited to the client’s needs. The company offers products across categories, brands, product types and price points including Women’s, Petite, Maternity, Men’s and Plus. It also offers various product types, including denim, dresses, blouses, skirts, shoes, jewelry and handbags, and sells merchandise across various range of price points.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for SFIX:NAS

Using a discounted cash flow model we generated an intrinsic value of $5.50 (USD) for SFIX:NAS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

SFIX:NAS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $5.50 1% 5% 1% 5%
WACC (or Ke) 9.15 $6.76 $4.59
Terminal Growth Rate 3.00 $4.67 $6.65
Tax Rate 0.27 $5.97 $5.02
Cash Flow 91,038,478 $5.07 $5.92
Capital Expenditures -21,993,000 $5.39 $5.60
Long Term Debt 0 $5.50 $5.50

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $8.14 (USD) for SFIX:NAS. We also generated a valuation of $15.37 (USD) using other metrics and comparables.
The comparable companies were Bed Bath & Beyond (BBBY:NAS), GameStop (GME:NYS), MarineMax (HZO:NYS), (FLWS:NAS) and Williams-Sonoma (WSM:NYS).

Company SFIX:NAS End Date Value
Earnings/Share ($0.66) (USD)
Book Value/Share $3.91 (USD)
Sales/Share $16.72 (USD)
Cash Flow/Share $0.42 (USD)
EBITDA/Share ($0.28) (USD)
Price Based on Comps Adjustment Factor (%)
$0.00 (USD) 0.0
$10.78 (USD) 0.0
$10.10 (USD) 0.0
$1.94 (USD) 0.0
$0.00 (USD) 0.0
0.00 PE Ratio 18.73 0.00 0.00 10.39 28.81 16.99
6.71 PB Ratio 2.76 1.28 1.87 1.34 4.13 5.16
1.57 PS Ratio 0.60 0.19 0.12 0.41 1.14 1.16
62.66 PCF Ratio 8.48 17.28 1.86 2.83 12.21 8.19
0.00 EV to EBITDA 10.59 0.00 0.00 6.79 13.95 11.03


Using a multiples approach we generated a valuation of  $25.16 (USD) for SFIX:NAS

Company SFIX:NAS End Date Value
Earnings/Share ($0.66) (USD)
Book Value/Share $3.91 (USD)
Sales/Share $16.72 (USD)
Cash Flow/Share $0.42 (USD)
EBITDA/Share ($0.28) (USD)
Price Based on Comps Adjustment Factor
$0.00 (USD) 0
$27.82 (USD) 0
$30.39 (USD) 0
$17.27 (USD) 0
$0.00 (USD) 0
Ratios Ratio Average
PE Ratio 74.27
PB Ratio 7.12
PS Ratio 1.82
PCF Ratio 41.25
EV to EBITDA 50.46

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  SFIX:NAS for the last 3 years was  7.12

We ran the Adjusted Book Value for  SFIX:NAS and generated a book value of  $3.87 (USD)
By multiplying these we get an adjusted valuation of  $27.50 (USD)

Analyst Data

In the Stockcalc database there are 2 analysts that provide a valuation for SFIX:NAS. The 2 analysts have a concensus valuation for SFIX:NAS for 2021 of $32.50 (USD).

SFIX:NAS Stitch Fix

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
2 0 0 5.0000 Buy 2020-9-25

Current Price: 27.5 USD

Analyst Consensus
USD Millions 2021 2022 2023
Mean EPS -0.24 0.03 0.42
# EPS Analysts 1 1 1
Mean Revenue 2,005.00 2,356.90 2,714.30
# Revenue Analysts 1 1 1
Mean Target Price 32.50
Mean Cash Flow
Mean Net Income -24.90 3.10 46.40
Mean Debt Outstanding
Mean Tax Rate 25.00 25.00 25.00
Mean Growth Rate
Mean Capital Expenditure

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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