• If you are wondering whether G-III Apparel Group at around US$31.90 is offering good value today, the key is to compare the recent share performance with what the fundamentals might justify.
• The stock has posted returns of 8.3% over the last 7 days, 19.7% over 30 days, 8.1% year to date and 30.0% over 1 year, with a 3 year return of 110.6% and a 5 year return of 3.8%.
• Recent coverage has focused on how fashion brands are positioning themselves with wholesalers and retailers. It has also examined how licensing partnerships and brand portfolios affect investor sentiment on apparel names. For G-III Apparel Group, this context is important when weighing whether the recent share price strength aligns with underlying value.
• Simply Wall St currently gives G-III Apparel Group a valuation score of 2 out of 6. The next step is to look at how different valuation methods judge the stock and then consider a broader way to think about value that goes beyond the numbers alone.

G-III Apparel Group scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: G-III Apparel Group Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model estimates what a business could be worth by projecting its future cash flows and then discounting those back to a single value in today’s dollars.

For G-III Apparel Group, the model uses a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is reported at $266.7 million, with analyst and extrapolated projections running out to 2035. For example, projected free cash flow is $74.1 million in 2026 and $110.7 million in 2028, with later years based on Simply Wall St estimates that gradually adjust the cash flows over time.

Rolling all of those discounted cash flows together leads to an estimated intrinsic value of about $21.14 per share, compared with the recent share price around $31.90. That gap implies the stock is assessed as 50.9% overvalued on this model.

This is only one lens. On these cash flow assumptions, you are paying a clear premium to the DCF estimate.

Result: OVERVALUED

Our Discounted Cash Flow (DCF) analysis suggests G-III Apparel Group may be overvalued by 50.9%. Discover 58 high quality undervalued stocks or create your own screener to find better value opportunities.

Approach 2: G-III Apparel Group Price vs Earnings

P/E is a common way to value profitable companies because it links what you pay for each share to the earnings that support that share. In general, higher growth expectations and lower perceived risk can justify a higher P/E ratio, while slower growth and higher risk usually point to a lower, more cautious P/E range.

G-III Apparel Group currently trades on a P/E of 19.98x. That is in line with the Luxury industry average of about 19.98x, and below the peer group average of 34.13x, which suggests the market is pricing G-III more conservatively than some peers in the same space.

Simply Wall St also uses a proprietary “Fair Ratio,” which estimates what the P/E should be for a company, based on factors such as its earnings growth profile, profit margins, industry, market cap and specific risks. This tailored view can be more informative than a simple peer or industry comparison because it adjusts for the company’s own characteristics rather than assuming all apparel names deserve similar multiples.

In this case, the Fair Ratio is not available, so it is not possible to judge directly whether the current 19.98x P/E is rich, cheap or roughly in line with that model.

Result: ABOUT RIGHT

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Upgrade Your Decision Making: Choose your G-III Apparel Group Narrative

Earlier it was mentioned that there is an even better way to understand valuation. Narratives pull everything together by letting you spell out your story for G-III Apparel Group, link that story to a forecast for revenue, earnings and margins, and translate it into a fair value that the Simply Wall St platform then compares with the current share price to help you decide what action, if any, makes sense as new information arrives.

On the Community page, you can see different Narratives side by side. For example, one investor sets fair value around US$40 per share based on assumptions about owned brand growth and balance sheet strength, and another sees fair value closer to US$33 with more cautious assumptions about revenue, margins and risks from lost licenses. This allows you to quickly judge which story fits your own view of G-III Apparel Group.

Do you think there's more to the story for G-III Apparel Group? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.