Market Pulse50Neutral

Stitch Fix, Inc.Opportunity Rank #140(SFIX) Intrinsic Value & DCF Analysis (2026)

Current Price

$3.32

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$3.32
Price
$5.23
Intrinsic Value
Undervalued by 58%MOS: $4.18

Fundamental Score

48/100
Bearish

Weighted across 6 signals

Narrative Score

52/100
Weak

-1 vs previous

The intrinsic value of Stitch Fix, Inc. (SFIX) is estimated at $5.23 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $3.32, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a -3.03% long-term growth rate and a 10.32% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Stitch Fix, Inc. (SFIX) is estimated at $5.23 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $3.32, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a -3.03% long-term growth rate and a 10.32% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$5.23
▲ 57.53% upside
20% margin of safety: $4.18
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
57.5% discount to price
100
FCF Yield
14.1% 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

52/100
Weak
-1 vs previousVs 6-Month Baseline:High (83rd pct)Weighted across 3 recent drivers
Trend: StableConfidence: 66%Updated: 1h ago
Sources: 19 (16 News · 3 Analyst)
Drivers(last 30 days)
13 news sentiment+0.3
3 regulatory scrutiny-0.0
3 analyst reiterations0.0

Investment Coach

Updated 15h ago
BUYConfidence: 52%
Thesis
Stitch Fix, Inc. is undervalued with an estimated fair value 67.8% above its current price and a healthy free cash flow yield of 14.1%, supported by a net cash balance sheet. Despite trailing returns relative to its cost of capital, the improving narrative trend suggests potential for positive momentum.
Key Risk
The company's returns remain significantly below its weighted average cost of capital, indicating ongoing operational challenges.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC versus 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.