PVH — Pvh Corp. /De/
Snapshot dated August 31, 2026.
PVH Corp. operates as a global apparel company primarily focused on the ownership and management of two iconic lifestyle brands, Calvin Klein and Tommy Hilfiger. The company generates revenue by designing, sourcing, and marketing a range of products including sportswear, denim, underwear, and accessories, which are sold through a mix of direct-to-consumer retail stores, e-commerce platforms, and wholesale distribution to department stores and specialty retailers. Its business model integrates these brands across diverse geographic markets, with significant operations in North America, Europe, and the Asia Pacific region. Beyond its core brands, the company maintains a legacy portfolio that includes heritage apparel lines which it has been actively divesting to streamline its focus. As a major player in the global fashion industry, PVH competes against other international apparel conglomerates and luxury groups for consumer discretionary spending. Recently, the company has undertaken a restructuring program aimed at simplifying its operating model and reducing costs to better align its brand portfolio with changing retail distribution patterns.
Fair Value / Share
$113.28
Price on August 31, 2026
$74.12
Margin of Safety
52.84%
Data by Equibles and SEC filings. Figures are as of August 31, 2026 and are not live.
Earnings Yield
Earnings Yield shows how much profit a company generates relative to its share price. EPS ÷ Stock Price.
Stock Price
$74.12
Market Cap
$3,439,168,000
Net Income (TTM)
$158,100,000
Diluted Shares
46.4 million
EPS (TTM)
$3.41
Earnings Yield
4.6%
AI Analysis
PVH Corp. has an earnings yield of 4.60%, derived from an EPS of $3.41 and a stock price of $74.12. This figure sits closely in line with the roughly 4-5% return available from safe alternatives like bonds. A yield at this level implies the current market price reflects a neutral expectation regarding future earnings growth compared to lower-risk assets. Should the company’s net income rise or the share price fall, the earnings yield would increase, indicating that each dollar of earnings is becoming cheaper to purchase. Conversely, if earnings decline or the price rises, the yield would contract. This measure does not capture future growth prospects, balance sheet health, or the stability of the company’s cash flow generation.
Return on Capital
EBIT ÷ (Net Working Capital + Net Fixed Assets) — how efficiently the business turns capital into profit.
EBIT (TTM)
$687,100,000
Net Working Capital
$782,700,000
Net Fixed Assets
$639,000,000
Invested Capital
$1,421,700,000
Return on Capital
48.33%
AI Analysis
PVH generates a return on capital of 48.33%, a figure derived from its TTM EBIT of $687.1M and total invested capital of $1.4B. This invested capital figure is the sum of $782.7M in net working capital and $639M in net fixed assets. In the context of this framework, which considers roughly 30% or more to be an efficient use of capital, this result indicates a high level of operational efficiency in terms of profit generation relative to the tangible assets deployed. It is important to note that this measure focuses exclusively on operational efficiency; it does not account for the tax structure of the business or its interest obligations. Furthermore, changes in this percentage could be driven by significant fluctuations in working capital requirements or heavy capital expenditures related to business reinvestment, rather than changes in the core operating profitability itself.
Acquirer's Multiple
Enterprise Value ÷ Operating Earnings — how many years of operating earnings it would take to buy the whole business.
| Company | Operating earnings | Enterprise value | Multiple |
|---|---|---|---|
| PVHPvh Corp. /De/ | $687.1M | $5.1B | 7.5x |
| TPRTapestry, Inc. | $1.9B | $27.4B | 14.3x |
| RLRalph Lauren Corp | $1.2B | $20.8B | 16.7x |
Where PVH sits: 7.5x against a peer median of 15.5x (peers: 14.3x and 16.7x) — 51.8% below the median.
Show the enterprise value bridge for each companyHide the enterprise value bridge
PVH
Debt $2.3B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $1.9B of operating lease liabilities as of 2026-05-03 ($1.6B non-current, $339.6M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
TPR
Named as a competitor: Competes directly in global premium apparel and lifestyle brands
Debt $2.4B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $1.6B of operating lease liabilities as of 2026-06-27 ($1.3B non-current, $307.8M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
RL
Named as a competitor: Competes in premium lifestyle apparel and global retail distribution
Debt $1.3B. This is reported total debt, including $227.8M of finance lease obligations ($20.3M + $207.5M in the filing). Finance leases are counted as debt because they are a borrowing in substance — the company has committed to fixed payments for an asset it effectively owns.
Operating earnings — PVH
AI Analysis
PVH holds an Acquirer's Multiple of 7.5x, derived from an enterprise value of $5.1B and operating earnings of $687.1M. Its competitors, TPR and RL, trade at 14.3x and 16.7x respectively. TPR carries an enterprise value of $27.4B against $1.9B in operating earnings, while RL reflects an enterprise value of $20.8B against $1.2B in operating earnings. Among these, PVH has the lowest multiple, and RL has the highest. In total, PVH is 7.5x against a peer median of 15.5x (peers: 14.3x and 16.7x) — 51.8% below the median. This measure captures the price paid per dollar of operating earnings; the gap could shift if PVH’s operating margins expand relative to its peers or if the market adjusts its enterprise value to reflect different growth expectations. The calculation does not account for differences in capital structure or the specific operating expenses unique to each business model, which can materially alter the relative earnings power of these entities.
FS-Score
A 10-check read on financial health, across profitability, balance-sheet stability and operating momentum.
FS-Score
5/10
Decent score — worth a deeper look before investing.
Section 1
Current Profitability
3/3
Current profitability is Strong, with the company earning a perfect 3 out of 3 as all cash and income checks are currently positive.
- Return on Assets is positive at 0.22%.
- Free Cash Flow to Total Assets remains positive at 4.61%.
- Accruals show high earnings quality, as Cash Flow from Operations is 26.89 times Net Income.
While these checks confirm the business is generating cash today, the score would drop if the company failed to maintain positive net income or cash flow relative to its asset base.
Return on Assets (ROA > 0)
PassFree Cash Flow to Total Assets (FCFTA > 0)
PassAccruals (CFO / Net Income > 1)
PassSection 2
Stability
2/3
The stability profile is Mixed, reflecting a balance between improved short-term liquidity and a rise in long-term debt levels.
- Leverage rose from 0.14 to 0.2, indicating a higher debt burden relative to total assets.
- Liquidity improved as the Current Ratio increased from 1.27 a year ago to 1.52.
- Net Dilution was avoided as the annual weighted average share count fell from 56.7 million shares to 48.5 million shares.
This section would reach a perfect score if long-term debt were reduced or held flat relative to total assets in the coming year.
Change in Leverage (↓ or unchanged)
FailChange in Liquidity (↑ Current Ratio)
PassNet Dilution (annual diluted weighted-average shares, this year vs last)
PassSection 3
Recent Operational Improvements
0/4
Operational improvements are Weak, with the company failing all four checks for year-over-year growth in efficiency and margins.
- Return on Assets declined from 5.42% to 0.22% year over year.
- Free Cash Flow to Total Assets fell from 5.28% in the prior year to 4.61%.
- Gross Margin contracted from 59.43% to 57.52%.
- Asset Turnover slowed slightly from 0.78 to 0.77.
To reverse this trend, the business would need to demonstrate higher revenue per dollar of assets or a widening of its gross profit margins.
Change in ROA (↑)
FailChange in FCFTA (↑)
FailChange in Gross Margin (↑)
FailChange in Asset Turnover (↑)
FailFramework conclusion
The total FS-Score of 5/10 indicates a solid but mixed financial health profile, where immediate cash generation and a lower share count are offset by declining operational trends. While the business is currently profitable, the failures in every operational improvement check suggest that recent performance has deteriorated compared to the previous year. This score suggests that any apparent cheapness in the stock may be linked to these weakening fundamentals rather than a simple market mispricing.
- The 0/4 score in operational improvements is driven by a drop in Gross Margin to 57.52%.
- Return on Assets remains positive at 0.22% but has fallen significantly from 5.42% last year.
- Shareholders saw the share count reduced to 48.5 million shares.
- Cash-backed earnings are high, with a Cash Flow from Operations to Net Income ratio of 26.89.
Intrinsic Value (DCF)
A 10-year discounted cash flow, then the bridge from business value to value per share.
Reported cash flow → unlevered free cash flow
Free Cash Flow (reported)
$550.5M
+ After-Tax Interest Expense
$74.7M
= Unlevered Free Cash Flow
$625.2M
Business value (10-year DCF)
PV of Years 1–10
$3.9B
PV of Terminal Value
$3B
= Business Value
$6.9B
Business value → share value
Intrinsic Value (business)
$6.9B
+ Cash & Equivalents
$592.5M
− Debt
$2.3B
= Shareholders' Value
$5.3B
÷ Diluted Shares
46.4 million
= Fair Value / Share
$113.28
Divided by 46.4 million diluted shares — the weighted-average diluted count from the most recent quarterly income statement, for the quarter ended 2026-05-03.
Risk bucket → discount rate
mid (12%)
Year-1 FCF
$625.2M
Growth rate (yrs 1–10)
3%
Terminal growth (after yr 10)
3%
AI Analysis
This valuation applies a 12% discount rate to PVH, reflecting its exposure to cyclical apparel demand and fashion risks. The 3.00% growth rate applied to the next ten years balances the company's recent free cash flow volatility against its brand stability. These projections begin from a fixed Year-1 unlevered free cash flow of $625.2M. The model also incorporates a 3% terminal growth rate, which is fixed rather than chosen for this company, representing a conservative long-term expectation. The terminal value accounts for 43.3% of the total business value. To derive the fair value per share, the intrinsic business value of $6.9B is adjusted by adding $592.5M in cash and subtracting $2.3B in debt. Dividing the remaining $5.3B by 46.4 million shares results in a fair value of $113.28. Against the current price of $74.12, this represents a margin of safety of 52.84%, serving as a buffer for the assumptions made. Given the weight of the terminal value, the result is most sensitive to the discount rate, as even minor adjustments to this risk-based figure significantly compound over time when calculating the present value of future cash flows.
Overall Verdict
How the five signals above stack up together, then the full synthesis.
Earnings Yield
4.6% vs ~4-5% bond-yield benchmark
Return on Capital
48.33% ROC vs ~30% benchmark
Acquirer's Multiple
7.5x against a peer median of 15.5x (peers: 14.3x and 16.7x) — 51.8% below the median.
FS-Score
5/10 — Solid but mixed
Intrinsic Value
52.84% margin of safety
The five checks present a business characterized by high operational efficiency coupled with a valuation that sits below comparative benchmarks. The Return on Capital of 48.33% indicates the company generates substantial returns on its invested capital, well above the 30% benchmark, while the FS-Score of 5/10 reflects a mix of operational strengths and weaknesses. Against this efficiency, the valuation metrics provide a contrasting perspective: the Acquirer's Multiple at 7.5x sits significantly below the 15.5x peer median, and the Intrinsic Value check suggests a 52.84% margin of safety, implying the current share price deviates considerably from estimated value. Meanwhile, the Earnings Yield of 4.6% aligns closely with the 4-5% bond-yield benchmark, indicating less separation between the company's yield and safer asset classes. The primary tension lies between the strong historical profitability metrics and the moderate FS-Score, suggesting that while the business has historically deployed capital effectively, recent performance is uneven. A significant shift in the FS-Score toward the higher end of the range would most substantively alter the picture of operational consistency.