Market Pulse63Bullish

Urban Outfitters, Inc.Opportunity Rank #91(URBN) Intrinsic Value & DCF Analysis (2026)

Current Price

$68.83

Last updated: Jul 13, 2026

Price vs Intrinsic Value

$68.83
Price
$110.34
Intrinsic Value
Undervalued by 60%MOS: $88.27

Fundamental Score

76/100
Bullish

Weighted across 6 signals

Narrative Score

63/100
Improving

-1 vs previous

Trend Score

31/100
Weak

As of 2026-07-10

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 $68.83, 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: 8.05%), 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 $68.83, 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: 8.05%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$110.34
▲ 60.31% 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
60.3% discount to price
100
FCF Yield
14.2% 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

63/100
Improving
-1 vs previousVs 6-Month Baseline:Above Avg (76th pct)Weighted across 5 recent drivers
Trend: Improving upConfidence: 91%Updated: 2d ago
Sources: 45 (42 News · 3 Analyst)
Drivers(last 30 days)
34 news sentiment+1.2
Upgrade headlines+0.1
4 regulatory scrutiny+0.0
3 earnings beat+0.0
3 analyst reiterations0.0

Trend Details

31/100
WeakAs of 2026-07-10309 daily bars used
6M Relative Strength vs SPY-23.0%
3M Relative Strength vs SPY-10.9%
Price vs 21 EMA-3.1%
Price vs 21 EMA31 · -3.1%
Price vs 50 EMA34 · -3.3%
21 EMA vs 50 EMA48 · -0.2%
3M RS vs SPY14 · -10.9%
6M RS vs SPY7 · -23.0%
Distance from 52W High66 · -16.8%

Investment Coach

Updating... 32d 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. engages in the operation of a general consumer product retail and wholesale business selling to customers through various channels including retail locations, websites, catalogs, and mobile applications. It operates through the following segments: Retail, Wholesale and Subscription. The Retail segment contains the Anthropologie, BHLDN, Free People, Terrain, and Urban Outfitters brands and its Food and Beverage division. The Wholesale segment designs, develops, and markets apparel, intimates, active wear, and home goods under the Free People, Anthropologie, and Urban Outfitters brands. The Subscription segment consists of the Nuuly brand, which is a monthly women’s apparel subscription rental service. The company was founded by Richard A. Hayne and Scott A. Belair in 1970 and is headquartered at Philadelphia, PA.