Is Levi Strauss & Co. (LEVI) overvalued or undervalued?

At a recent price of $24.10, Levi Strauss & Co. (LEVI) sits inside a range too wide to call either way: our valuation lenses put the business somewhere between $10.57 and $40.96 per share. They disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.

The valuation discounts Levi Strauss & Co.'s projected free cash flows at a weighted-average cost of capital (WACC) of 10.1%, with a long-run terminal growth rate of 2.5%. About 70% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.

Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 7.5% annual revenue growth for LEVI. Our base case instead compounds to about 4.4% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.

Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, LEVI's modeled DCF value ranges from about $13.45 to $25.54 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.

How to read this page: the DCF fair value is what Levi Strauss & Co. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of LEVI's intrinsic value. Figures update as new filings and prices come in.