Tapestry, Inc. (TPR): fair value, margin of safety and Wheel Score

Is TPR undervalued?

TPR closed at 115.03 on 16 Oct 2026 against a GLS average fair value of 121.05 - 5.0% below fair value, which our screens read as "fairly priced". 3 of 9 models are above the current price. There is no discount to lean on here, so the margin of safety is not the reason to look at the stock.

The 9 models disagree widely: Graham Number gives 23.91 while Graham Growth gives 255.14. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files TPR under Quality / Blue-Chip: a high moat score and a high health score together.

Nine valuation models for TPR

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

On financial health TPR scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 7.8 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.

Returns on capital are high - ROIC 32.9%, ROE 220.7%, ROA 22.8% - with debt at 5.71 times equity and a free-cash-flow yield of 7.9%. Debt of 5.71 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.

The dividend yield is 1.45% with a payout ratio of 21% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Coach 88%, Kate Spade & Company 13% (quarter Q4 FY2026).

Institutional ownership scores 10/10, insider activity 3/10 and Congressional trading 1/10 on the GLS smart-money scales.

Wheel Score 80: Prime

TPR scores 80 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 15/25), Piotroski health (16/20), the GLS moat (12/15), the option premium on offer (20/20) and how easily the stock trades (18/20).

Implied volatility is 52% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 39,746 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 1.4M shares a day on a market cap of $23.0B, with a beta of 1.43 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 18 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The next earnings report is due on 5 Nov 2026 (before the open), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Luxury Goods

The 12 companies below are the closest to Tapestry, Inc. by market cap within the Luxury Goods industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

⚖ Compare TPR with 7 of them   All Consumer Cyclical stocks →