a.k.a. Brands Holding Corp.

AKA ·Consumer Cyclical, Specialty Retail, United States
Valuation › AI Valuation

AI Valuation

AI-generated fair value estimate for this company.

AI Fair Value $13.78
Market Price $10.90
Undervalued By 20.9%

Method: 10-year DCF on a normalized free-cash-flow margin rather than the depressed TTM reported figure: $603.56M TTM revenue grown 4.5% per year; FCF margin ramping from 3% of revenue in year 1 to 5% by year 5 and held flat thereafter (reflecting operating leverage as the Princess Polly / Petal & Pup brand portfolio scales); 12% discount rate for small-cap consumer-discretionary risk; 2.5% terminal growth; less net debt of $195.24M ($21.05M cash versus $216.29M debt); divided by 10.99 million shares outstanding.

Reasoning: AKA's TTM reported free cash flow of only $9.09M understates normalized earning power for a $603M-revenue apparel platform, so I modeled FCF as a ramping percentage of revenue rather than compounding the temporarily depressed reported FCF figure directly.