Tapestry, Inc.

Methodology

Tapestry's fair value calculation is challenging due to the cyclical nature of accessible luxury demand, which swings with consumer confidence and discretionary spending trends. The method works best when applied to normalized mid-cycle earnings, as peak and trough periods can create misleading valuation signals. Investors should also consider that brand strength and pricing power matter more than current EPS, making qualitative factors critical alongside quantitative valuation.

Methodology

PEG ratios for Tapestry can be volatile because growth rates fluctuate significantly with fashion cycles, economic conditions, and brand momentum across Coach, Kate Spade, and Stuart Weitzman. Low PEG ratios during turnaround phases may signal opportunity but also reflect execution risk, while high ratios during strong periods may precede normalization. Comparing Tapestry's PEG to other accessible luxury peers like Capri provides context, but investors should emphasize brand health and same-store sales trends over the ratio itself.

Methodology

Tapestry pays a meaningful dividend, so PEGY provides added value support during periods of weak growth or brand repositioning when PEG alone looks unattractive. The dividend yield offers tangible return while management works to stabilize brands and drive comparable store sales improvements. For total-return investors, PEGY captures both the income component and potential upside from successful turnaround execution at underperforming brands.