Market Pulse59Neutral

Stitch Fix, Inc.Opportunity Rank #138(SFIX) Intrinsic Value & DCF Analysis (2026)

Current Price

$3.60

Last updated: May 08, 2026

Price vs Intrinsic Value

$3.60
Price
$5.17
Intrinsic Value
Undervalued by 44%MOS: $4.14

Fundamental Score

48/100
Bearish

Weighted across 6 signals

Narrative Score

50/100
Weak

No change vs previous

Trend Score

26/100
Weak

As of 2026-05-08

The intrinsic value of Stitch Fix, Inc. (SFIX) is estimated at $5.17 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $3.60, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a -3.03% long-term growth rate and a 10.44% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Stitch Fix, Inc. (SFIX) is estimated at $5.17 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $3.60, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a -3.03% long-term growth rate and a 10.44% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$5.17
▲ 43.61% upside
20% margin of safety: $4.14
Years: 10Growth Rate: -3.03%
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Capital Efficiency

Average Quarterly ROIC
-5.69%
Cost of Capital (estimated)9%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

48/100
BearishWeighted across 6 signals
DCF Discount
43.6% discount to price
100
FCF Yield
13.0% trailing FCF yield
100
ROIC vs WACC
ROIC -5.7% vs WACC 9.0% (-0.6x)
0
Net Debt / FCF
Net cash position
100
Buybacks
Share count growing
30
FCF CAGR (5Y)
-1.4% 5Y FCF CAGR (adjusted)
0
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Buybacks.

Narrative Details

50/100
Weak
Vs 6-Month Baseline:Below Avg (34th pct)Weighted across 4 recent drivers
Trend: StableConfidence: 62%Updated: 17h ago
Sources: 17 (14 News · 3 Analyst)
Drivers(last 30 days)
Upgrade headlines+0.0
11 news sentiment-0.0
2 regulatory scrutiny-0.0
3 analyst reiterations0.0

Trend Details

26/100
WeakAs of 2026-05-08311 daily bars used
3M Relative Strength vs SPY-23.4%
6M Relative Strength vs SPY-26.0%
Distance from 52-Week High-38.8%
Price vs 21 EMA39 · -1.8%
Price vs 50 EMA38 · -2.4%
21 EMA vs 50 EMA45 · -0.6%
3M RS vs SPY2 · -23.4%
6M RS vs SPY5 · -26.0%
Distance from 52W High22 · -38.8%

Investment Coach

Updated 15h ago
BUYConfidence: 52%
Thesis
Stitch Fix, Inc. is undervalued with an estimated fair value 53.1% above its current price, supported by a healthy free cash flow yield of 13.0% and a net cash balance sheet. Despite trailing returns relative to its cost of capital, the company's valuation discount presents a compelling buying opportunity.
Key Risk
The key risk is the company's negative return on invested capital significantly below its weighted average cost of capital, indicating potential value destruction.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: -3.03%5 Year CAGR: 26.65%

Free Cash Flow (in millions)

TTM2025202420232022202120202019201820172016
$64$41$42$77$102$20$73$109$89$56$60

How Intrinziq Estimates Fair Value

Intrinziq estimates Stitch Fix, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Stitch Fix, Inc.Consumer Cyclical

Stitch Fix, Inc. sells a range of apparel, shoes, and accessories through its Website and mobile application in the United States. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags for men, women, and kids under the Stitch Fix brand. The company was formerly known as rack habit inc. and changed its name to Stitch Fix, Inc. in October 2011. Stitch Fix, Inc. was incorporated in 2011 and is headquartered in San Francisco, California.