• If you are wondering whether Levi Strauss stock still offers value after its recent run, or if you might be late to the party, this article explains what the current price appears to reflect.
• The stock last closed at US$23.72, with returns of 9.1% over 7 days, 6.4% over 30 days, 13.9% year to date, 37.2% over 1 year and 98.0% over 3 years, compared with 2.2% over 5 years.
• Recent coverage has focused on Levi Strauss as a global consumer brand and on how investors are reassessing established apparel stocks as they balance fashion exposure with broader consumer trends. This shift in attention helps explain why some investors are revisiting the stock at current levels instead of treating it as a mature, low growth holding.
• On Simply Wall St’s valuation checks, Levi Strauss scores a 5 out of 6 for being undervalued. Next, you will see how different valuation approaches compare, along with a way of looking at value that goes beyond the usual multiples and models by the end of the article.

Approach 1: Levi Strauss Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model estimates what a stock could be worth by projecting the company’s future cash flows and discounting them back to today’s value. It focuses on cash that could be available to shareholders rather than accounting earnings.

For Levi Strauss, the model used is a 2 Stage Free Cash Flow to Equity approach, built on last twelve months free cash flow of about $440.1 million. Analyst and extrapolated projections suggest free cash flow reaching $659 million in 2028, with further estimates extending out to 2035 and then discounted using Simply Wall St’s methodology.

Pulling these projections together gives an estimated intrinsic value of about $33.14 per share. Compared with the recent share price of $23.72, the DCF implies the stock trades at a 28.4% discount to this model’s estimate, which indicates it screens as undervalued on this cash flow view.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Levi Strauss is undervalued by 28.4%. Track this in your watchlist or portfolio, or discover 46 more high quality undervalued stocks.

Approach 2: Levi Strauss Price vs Earnings

For a profitable company like Levi Strauss, the P/E ratio is a useful way to see what investors are currently willing to pay for each dollar of earnings. A higher or lower P/E often reflects what the market expects for future earnings growth and how much risk investors see in those earnings.

Levi Strauss trades on a P/E of 16.93x, compared with the Luxury industry average of about 23.94x and a peer average of 56.99x. On the surface, that puts the stock at a lower earnings multiple than many listed peers in its space.

Simply Wall St’s Fair Ratio for Levi Strauss is 23.35x. This is a proprietary estimate of what a reasonable P/E could be for this specific company, based on factors such as its earnings growth profile, margins, industry, market cap and risk characteristics. That makes it more tailored than a simple comparison with industry or peer averages, which can be skewed by companies with very different growth, size or risk.

Comparing the current P/E of 16.93x with the Fair Ratio of 23.35x suggests the stock trades below this fair multiple on an earnings basis.

Result: UNDERVALUED

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Upgrade Your Decision Making: Choose your Levi Strauss Narrative

Earlier we mentioned that there is an even better way to understand valuation. Simply Wall St uses Narratives, where you set a story for Levi Strauss that ties together your view on its brand strengths or risks, your expectations for future revenue, earnings and margins, and the fair value that falls out of those assumptions. You then compare that fair value with the current share price to help decide whether to wait, add or trim, all inside an accessible tool on the Community page that automatically refreshes when new results or news land. One investor might build a more optimistic Levi Strauss Narrative that lines up with a Fair Value around US$32.51, while another might lean on a more cautious Narrative closer to US$23.00, and both can see clearly how different views on the same stock translate into different numbers.

For Levi Strauss however, we will make it really easy for you with previews of two leading Levi Strauss Narratives:

Fair value in this bullish Narrative: US$32.51

Current price vs this fair value, using the Narrative inputs, suggests the stock is about 27.1% below that level.

Revenue growth assumption used: 7.0% a year.

• Views Levi Strauss as benefiting from direct to consumer and international expansion, sustainability efforts and a broader product range supporting brand strength.
• Builds in analyst expectations for revenue growth around 7.0% a year, higher profit margins and share count reduction, all discounted at 9.31%.
• Arrives at a fair value of about US$32.51, tied to earnings of US$907.9m by 2029 and a future P/E of 16.5x, while flagging denim reliance, digital execution and macro risks.

Fair value in this bearish Narrative: US$23.00

Current price vs this fair value, using the Narrative inputs, suggests the stock is about 3.1% above that level.

Revenue growth assumption used: 3.8% a year.

• Highlights tariff exposure, international reliance and direct to consumer cost risks as potential pressure points for margins and earnings.
• Builds in analyst expectations for revenue growth around 3.8% a year, modest margin improvement and the same buyback pace, discounted at 9.67%.
• Arrives at a fair value of about US$23.00, tied to earnings of US$806.1m by 2029 and a future P/E of 13.3x, while acknowledging growth in direct to consumer, international markets and gross margin.

If you want to see how other investors are joining these dots into full stories that link growth, risks and valuation for Levi Strauss, have a look at the See what the community is saying about Levi Strauss.

Do you think there's more to the story for Levi Strauss? 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.