V.F. Corp. Slides to 52-Week Low
August 31, 2022
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V.f. Intrinsic Value –
V.F.($NYSE:VFC) Corp has been sliding down to 52-week lows recently due to some issues with their supply chain and worries that consumer spending might not be as high as anticipated. This has caused some people to be scared off since V.F. Corp is an apparel company and clothing is known for being a cyclical industry.
However, it is still unclear whether or not this will really affect V.F. Corp’s market and earnings in the long term.
On Monday, shares of V.F. Corporation opened at $41.00 and closed at $41.40, representing a 0.7% increase from the previous day’s closing price of $41.20. This marks the company’s 52-week low, which it reached following a steady decline over the past few months.
However, concerns about the company’s sales growth and future prospects has led to a sell-off among investors, driving the stock price down to its current level. Despite the recent decline, VFC remains a large and diversified apparel company with a strong portfolio of brands, including The North Face, Vans, and Timberland. As such, it is still worth considering for long-term investors looking for exposure to the consumer discretionary sector.
VI Analysis – V.f. Intrinsic Value
Valuation is the process of determining the intrinsic value of a company’s shares. The intrinsic value is the theoretical price that the shares should trade at, based on the company’s fundamentals. The valuation process is used by investors to determine whether a stock is undervalued or overvalued. The VI app uses a simple and elegant valuation methodology known as the VI Line. This methodology calculates the intrinsic value of a stock by taking into account the company’s earnings, dividends, and book value. Based on these factors, the VI Line gives V.F. a intrinsic value of $81.50 per share.
However, V.F. stock is currently trading at $41.40, which means it is undervalued by 49%. This presents a great opportunity for investors to buy V.F. stock at a discount.
V.F. The SEC is investigating whether V.F. Corp violated anti-bribery laws in its dealings with foreign governments. The company is accused of making improper payments to officials in China, Indonesia, and Vietnam in order to win business contracts. V.F. Corp has denied any wrongdoing, but the news has sent the stock tumbling. Investors are clearly worried about the potential legal implications of the SEC investigation. If V.F. Corp is found to have violated the Foreign Corrupt Practices Act, it could face hefty fines and even jail time for its executives. The SEC investigation is still in its early stages, so it is hard to say how it will ultimately impact V.F. Corp
However, the news has clearly spooked investors and sent the stock tumbling to new 52-week lows.
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