Market Pulse45Neutral

Urban Outfitters, Inc.Opportunity Rank #39(URBN) Intrinsic Value & DCF Analysis (2026)

Current Price

$72.75

Last updated: Jun 23, 2026

Price vs Intrinsic Value

$72.75
Price
$110.34
Intrinsic Value
Undervalued by 52%MOS: $88.27

Fundamental Score

76/100
Bullish

Weighted across 6 signals

Narrative Score

59/100
Improving

-4 vs previous

Trend Score

50/100
Neutral

As of 2026-06-22

The intrinsic value of Urban Outfitters, Inc. (URBN) is estimated at $110.34 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $72.75, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 2.12% long-term growth rate and a 10.00% discount rate (calculated: 8.12%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Urban Outfitters, Inc. (URBN) is estimated at $110.34 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $72.75, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 2.12% long-term growth rate and a 10.00% discount rate (calculated: 8.12%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$110.34
51.67% upside
20% margin of safety: $88.27
Years: 10Growth Rate: 2.12%
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Capital Efficiency

Average Quarterly ROIC
4.52%
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

76/100
BullishWeighted across 6 signals
DCF Discount
51.7% discount to price
100
FCF Yield
13.4% trailing FCF yield
100
ROIC vs WACC
ROIC 4.5% vs WACC 9.0% (0.5x)
25
Net Debt / FCF
0.9x net debt to FCF
81
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
13.4% 5Y FCF CAGR
92
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC.

Narrative Details

59/100
Improving
-4 vs previous · +1 new driversVs 6-Month Baseline:Above Avg (66th pct)Weighted across 5 recent drivers
Trend: StableConfidence: 92%Updated: 2h ago
Sources: 39 (36 News · 3 Analyst)
Drivers(last 30 days)
Upgrade headlines+0.5
29 news sentiment+0.3
3 earnings beat+0.0
3 regulatory scrutiny+0.0
3 analyst reiterations0.0

Trend Details

50/100
NeutralAs of 2026-06-22308 daily bars used
6M Relative Strength vs SPY-21.0%
Distance from 52-Week High-12.0%
21 EMA vs 50 EMA+2.4%
Price vs 21 EMA43 · -1.2%
Price vs 50 EMA56 · +1.2%
21 EMA vs 50 EMA69 · +2.4%
3M RS vs SPY50 · -0.0%
6M RS vs SPY9 · -21.0%
Distance from 52W High76 · -12.0%

Investment Coach

Updating... 12d ago
BUYConfidence: 69%
Thesis
Urban Outfitters, Inc. is undervalued with an estimated fair value 51.8% above its current price, supported by strong fundamentals and a bullish score of 76. Despite trailing returns relative to its cost of capital, the company's free cash flow yield and buyback activity indicate potential for value appreciation.
Key Risk
The company's return on invested capital (ROIC) remains below its weighted average cost of capital (WACC), posing a risk to sustained profitability.
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: 2.12%5 Year CAGR: 13.40%

Free Cash Flow (in millions)

TTM2025202420232022202120202019201820172016201520142013201220112010200920082007
$835$685$709$342$622$445$491$562$387$559$548$552$609$565$473$529$435$364$370$399

How Intrinziq Estimates Fair Value

Intrinziq estimates Urban Outfitters, 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.

Urban Outfitters, Inc.Consumer Cyclical

Urban Outfitters, Inc. operates as a diversified lifestyle retail and wholesale enterprise, focusing on a broad range of consumer products. Its operations are structured into three primary segments: Retail, Wholesale, and the Nuuly subscription rental service. The Retail segment encompasses several distinct banners, each catering to specific demographics and styles. Its namesake Urban Outfitters stores target young adults aged 18-28 with a comprehensive selection of fashion apparel (women's and men's), activewear, intimate apparel, footwear, accessories, home decor, electronics, and beauty items. Anthropologie outlets appeal to women aged 28-45, providing sophisticated casual wear, accessories, intimates, shoes, home furnishings, gifts, decorative objects, and beauty and wellness products. Specialized offerings include Bhldn, which features heirloom-quality wedding gowns, bridesmaid and party dresses, jewelry, headpieces, footwear, lingerie, and decorative items; and Terrain, which provides lifestyle home and garden products, outdoor living essentials, antiques, live plants, flowers, wellness goods, and accessories. Free People retail locations serve young women aged 25-30 seeking casual apparel, intimates, activewear, shoes, accessories, home goods, gifts, and beauty and wellness products. Additionally, the company operates various restaurants and the Nuuly brand, a women's apparel subscription rental service. Customers can access these offerings directly through a broad array of channels, including brick-and-mortar stores, e-commerce websites, mobile applications, catalogs, customer contact centers, as well as franchised or third-party operated stores and other digital platforms. As of January 31, 2022, Urban Outfitters, Inc. maintained a significant physical presence, with 261 Urban Outfitters, 238 Anthropologie Group, and 173 Free People stores situated across the United States, Canada, and Europe. This also included 10 restaurants and three franchisee-owned stores (two Urban Outfitters and one Anthropologie). The Wholesale segment focuses on distributing young women's contemporary casual apparel, intimates, activewear, and shoes under the Free People brand, alongside various home goods. These products are supplied to department and specialty stores worldwide. Established in 1970, the company's corporate headquarters are located in Philadelphia, Pennsylvania.