Carter's, Inc.
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$73.60
Market Price
$31.59
Undervalued By
57.1%
Method: 10-year owner-earnings DCF: $190.33M TTM net income growing 3%/yr years 1-5, 2%/yr years 6-10; 9.5% discount rate; 2% terminal growth; 36.71M shares.
Reasoning: Carter's trades at a depressed 5.9x trailing P/E versus a mature but still profitable apparel franchise with strong brand equity, so a conservative owner-earnings DCF is used to test whether the current market price understates steady-state earnings power.