Citi Trends, Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $15M normalized FCF base (forward estimate from FY2026-guided adjusted EBITDA of $38-42M less ~$20-22M capex and taxes, below trailing near-breakeven FCF given still-maturing post-turnaround conversion); 15% annual FCF growth for years 1-5; 6% for years 6-10; 11% discount rate; 3% terminal growth; $55.9M net cash; 8.12M shares outstanding.

Reasoning: Citi Trends is mid-turnaround (8 consecutive quarters of comp growth, gross margin recovery from 37.5% to 39.6%) with a debt-free balance sheet; the higher discount rate reflects small-cap/thin-float risk and historically volatile execution, while near-term growth tracks current comp-sales momentum before decelerating to a normalized off-price-retail growth rate.