Shares of Tapestry (TPR, Financial) experienced a significant surge, rising by 12.9% as the company announced the termination of its proposed merger with Capri. This move was complemented by an approval from Tapestry's board for an additional $2 billion share repurchase program.
The current stock price of Tapestry stands at $57.87, reflecting a 6.61% change on the day. This jump is supported by strong investor sentiment amid the latest corporate developments.
In terms of valuation, Tapestry's (TPR, Financial) price-to-earnings (P/E) ratio is 16.73, while its price-to-book (P/B) ratio is 4.52. The company's market capitalization is $13.49 billion, positioning it as a mid-cap stock in the luxury goods sector.
Investors should note that Tapestry has a GF Value of $42.06, which suggests the stock is significantly overvalued at the current price. For further details on Tapestry's GF Value, visit the GF Value page.
Despite its growth prospects, Tapestry faces some financial warning signs. The Altman Z-score of 2 indicates potential financial stress, placing the company in the grey area, though not under immediate bankruptcy threat.
Positively, the company's Beneish M-Score of -2.91 suggests that it is unlikely to be a financial manipulator, providing some reassurance to investors. Additionally, the firm's cash flow growth is noteworthy, with a 17.1% growth over the past year.
Overall, while Tapestry's recent stock movement has been considerably positive, investors should remain cautious given the valuation concerns and potential financial stress indicators.
