PVH — PVH CORP.
Snapshot dated September 25, 2026.
PVH Corp. is a global apparel company that owns and markets a portfolio of brands including Calvin Klein and Tommy Hilfiger. The business operates through several segments, primarily focused on lifestyle brands which design, market, and distribute products ranging from sportswear and denim to underwear and accessories. Their revenue is generated through a mix of wholesale channels, direct-to-consumer retail stores, and e-commerce platforms serving a diverse consumer base across North America, Europe, and Asia. As one of the largest apparel companies in the world, PVH competes with other major fashion conglomerates such as Ralph Lauren and Tapestry. The company has recently been executing a strategic plan called the PVH+ Plan, which emphasizes strengthening brand power and streamlining operations to improve overall efficiency. This multi-year transformation involves reducing their global retail footprint and shifting toward a more digital-first, demand-driven supply chain model.
Fair Value / Share
$161.85
Price on September 25, 2026
$75.99
Upside to fair value
112.98%
Margin of safety 53.0%
Upside is measured against what you pay; margin of safety is measured against what the business is worth.
Data by Equibles and SEC filings. Figures are as of September 25, 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
$75.99
Market Cap
$3,503,139,000
Net Income (TTM)
-$169,000,000
Diluted Shares
46.1 million
EPS (TTM)
-$3.67
Earnings Yield
-4.82%
AI Analysis
With a stock price of $75.99 and an EPS (TTM) of $-3.67, PVH Corp. currently reflects an earnings yield of -4.82%. This figure stands in contrast to the 4-5% annual return typically available from a safe alternative like a bond. A negative earnings yield indicates that the company is currently not generating positive net income on a trailing twelve-month basis, meaning the denominator of the calculation effectively results in an outflow rather than a return. For this yield to become positive and approach or exceed the 4-5% benchmark, the company would need to transition from a net loss to consistent profitability. This measure is limited because it captures only a snapshot of past twelve-month performance and does not account for future potential restructuring savings or changes in brand performance.
Return on Capital
EBIT ÷ (Net Working Capital + Net Fixed Assets) — how efficiently the business turns capital into profit.
EBIT (TTM)
$363,000,000
Net Working Capital
$612,300,000
Net Fixed Assets
$620,200,000
Invested Capital
$1,232,500,000
Return on Capital
29.45%
AI Analysis
For PVH, the Return on Capital framework calculates a figure of 29.45%. This percentage is derived from an EBIT of $363M divided by a total invested capital of $1.2B, which combines $612.3M in net working capital and $620.2M in net fixed assets. In this framework, a return of 29.45% sits just below the 30% benchmark typically used to indicate a highly efficient use of capital, placing it squarely within the adequate range. This result means that for every dollar of tangible operating capital tied up in the business, the company generates roughly 29 cents of operating profit. This measure is sensitive to the intensity of asset deployment; a shift in inventory management or property utilization would directly impact the denominator. Note that this framework does not capture intangible assets or intellectual property, which may be significant drivers of profitability for fashion-oriented businesses even if they do not appear as physical capital.
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. | $363M | $4.8B | 13.2x |
| TPRTapestry, Inc. | $1.9B | $25.3B | 13.2x |
| RLRalph Lauren Corp | $1.2B | $21.4B | 17.1x |
Where PVH sits: 13.2x against a peer median of 15.2x (peers: 17.1x and 13.2x) — 13.1% below the median.
Show the enterprise value bridge for each companyHide the enterprise value bridge
PVH
Debt $2.2B. 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 2026-08-02 ($1.6B non-current, $349.3M 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 directly in premium lifestyle apparel and global designer clothing brands
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.
TPR
Named as a competitor: Competes in accessible luxury apparel, accessories, and global fashion brand management
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.
Operating earnings — PVH
AI Analysis
PVH holds an Acquirer's Multiple of 13.2x, derived from an enterprise value of $4.8B and operating earnings of $363M. Among the analyzed companies, Competitor RL possesses the highest multiple at 17.1x, while PVH and Competitor TPR share the lowest at 13.2x. The computed comparison places PVH at 13.2x against a peer median of 15.2x, which is 13.1% below the median. This measure evaluates the cost of acquiring the business relative to its core operating profit, though it does not account for differences in capital structure or underlying business model efficiencies. The gap between these multiples would narrow if there were a change in the relative debt loads or capital allocation strategies of the companies, or if shifts in operating margins brought their profitability closer together.
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
PVH Corp. shows a Strong result in this section by recording both positive accounting profit and free cash flow relative to its asset base, alongside high-quality earnings backed by cash.
- Return on Assets remained positive at 0.22%.
- Free Cash Flow to Total Assets reached 4.61%.
- Accruals measured 26.89, indicating that cash flow from operations significantly exceeded net income.
This score reflects a company that is currently generating real cash, though a significant decline in the net income component would be required to flip the ROA signal to a fail.
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 of the balance sheet is Mixed, characterized by a reduction in share count and better short-term liquidity, offset by an increase in the long-term debt burden.
- Leverage increased as the ratio of long-term debt to assets rose from 0.14 to 0.2.
- Liquidity improved with the current ratio climbing from 1.27 to 1.52.
- Net Dilution was negative as the share count fell from 56.7 million shares to 48.5 million shares.
While the company is returning capital to shareholders through buybacks, the rising leverage ratio suggests a greater reliance on debt financing compared to the prior 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 trends are Weak, as the company failed to improve on any of the four efficiency and margin benchmarks compared to its prior-year performance.
- Return on Assets fell from 5.42% to 0.22%.
- Free Cash Flow to Total Assets declined from 5.28% to 4.61%.
- Gross Margin compressed from 59.43% to 57.52%.
- Asset Turnover decelerated slightly from 0.78 to 0.77.
For this score to improve, the company would need to demonstrate either better pricing power to lift margins or increased revenue generation from its existing asset base.
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 company with solid current profitability but deteriorating operational momentum. While the business is cash-flow positive and reducing its share count, the decline across all four improvement signals suggests the business is becoming less efficient. This score suggests that the current valuation may reflect these weakening operational trends rather than a simple market mispricing.
- Accruals of 26.89 show that cash generation is currently much stronger than accounting profits.
- Gross Margin contracted to 57.52%, indicating pressure on profitability or cost structures.
- The current ratio improved to 1.52, signaling a healthier buffer for short-term obligations.
- Return on Assets dropped significantly from 5.42% to 0.22% year over year.
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)
$715M
+ After-Tax Interest Expense
$71.9M
= Unlevered Free Cash Flow
$786.9M
Business value (10-year DCF)
PV of Years 1–10
$5B
PV of Terminal Value
$3.8B
= Business Value
$8.7B
Terminal value share
43.27%
Business value → share value
Intrinsic Value (business)
$8.7B
+ Cash & Equivalents
$965.9M
− Debt
$2.2B
= Shareholders' Value
$7.5B
÷ Diluted Shares
46.1 million
= Fair Value / Share
$161.85
Divided by 46.1 million diluted shares — the weighted-average diluted count from the most recent quarterly income statement, for the quarter ended 2026-08-02.
Risk bucket → discount rate
mid (12%)
Year-1 FCF
$786.9M
Trailing twelve months.
FY2024 $724.7M · FY2025 $582.2M · FY2026 $538.4M
Growth rate (yrs 1–10)
3%
Terminal growth (after yr 10)
3%
AI Analysis
The valuation for PVH applies a 12% discount rate, reflecting a mid-level risk profile where the strong global presence of Calvin Klein and Tommy Hilfiger is balanced against consumer cyclicality and the execution risks inherent in the fashion industry. The 3.00% growth rate used for the ten-year forecast corresponds to the mature, slow-growth nature of the apparel sector and the company's recent cash flow performance. This forecast relies on a fixed Year-1 FCF of $786.9M. The terminal growth rate is fixed at 3% for all companies in this framework to maintain consistent long-term assumptions. The business value, derived from the sum of forecasted cash flows and terminal value, is bridged by adding $965.9M in cash and subtracting $2.2B in debt before being divided by 46.1 million shares. This results in a fair value per share of $161.85. Compared to the current price of $75.99, the upside to fair value is 112.98%. The margin of safety, which measures the buffer the estimate carries for being wrong, is 53.0%. The result is most sensitive to the discount rate and the growth rate, as small variations in these long-term assumptions can significantly alter the total business value.
Overall Verdict
How the five signals above stack up together, then the full synthesis.
Earnings Yield
-4.82% vs ~4-5% bond-yield benchmark
Return on Capital
29.45% ROC vs ~30% benchmark
Acquirer's Multiple
13.2x against a peer median of 15.2x (peers: 17.1x and 13.2x) — 13.1% below the median.
FS-Score
5/10 — Solid but mixed
Intrinsic Value
112.98% upside to fair value
The framework presents a mixed reading on PVH Corp., where metrics evaluating operational efficiency are balanced against divergent signals on valuation. The return on capital of 29.45% sits marginally below the 30% benchmark, and the FS-Score of 5/10 reflects a similarly middling operational performance. Conversely, valuation measures provide conflicting data points: the earnings yield at -4.82% falls below the bond-yield benchmark, indicating a lack of earnings power relative to the capital investment, yet the Acquirer's Multiple of 13.2x sits 13.1% below the 15.2x peer median. Further, the intrinsic value model suggests a 112.98% upside to fair value, with a 53.0% margin of safety. This creates a tension between the company's current earnings trajectory and its market-implied valuation. A significant improvement in the company's ability to generate operating cash flow relative to its enterprise value would most substantively alter the earnings yield signal, potentially bringing that specific measurement into alignment with the rest of the valuation profile.
Comments
Notes from readers on PVH — one each. Comments stay with the company, so they carry across to a later snapshot, and each one shows the date it was written.
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