Assessing Levi Strauss (LEVI) Valuation After Recent Share Price Weakness And Long Term Returns

Levi Strauss (LEVI) is on investors’ radar after recent share price moves, with the stock closing at $21.76. That price now sits alongside mixed short term returns and stronger multi year performance.

See our latest analysis for Levi Strauss.

The recent 1 day share price return of a 4.9% decline and a softer 7 day move sit against a 1 year total shareholder return of 18.37% and a 3 year total shareholder return of 34.95%. This suggests that longer term momentum has been stronger than the latest step back.

If you are weighing Levi Strauss against other ideas in your portfolio, it could be a good moment to broaden your search and look at 22 top founder-led companies.

With Levi Strauss trading at $21.76 alongside a value score of 5 and an indicated 19.5% intrinsic discount, the key question is whether this reflects genuine undervaluation or if the market is already pricing in future growth.

Most Popular Narrative: 19.4% Undervalued

At a last close of $21.76 versus a narrative fair value of $27.00, the widely followed view is that Levi Strauss trades at a discount that hinges on execution around growth and margins.

Levi's decisive shift to a Direct-to-Consumer-first business, now representing over half of sales, is delivering higher margins (DTC EBIT up 400bps YTD), greater control over brand experience, and faster innovation cycles, which is described as driving sustained improvements in net margins and future earnings.

Read the complete narrative.

Want to see what keeps that fair value above the current price? The narrative leans heavily on steady revenue gains, firmer margins, and a lower future earnings multiple than many peers. Curious how those moving parts fit together over the next few years and still point to $27.00 as a central case?

Result: Fair Value of $27.00 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this story can change quickly if tariff costs bite harder than expected or if denim demand softens, given Levi’s reliance on its core brand.

Find out about the key risks to this Levi Strauss narrative.

Next Steps

If this mix of upside potential and real risks has you thinking twice, do not wait too long to check the full picture. You can weigh the trade off yourself by reviewing the 5 key rewards and 2 important warning signs and seeing how it lines up with your own expectations.

Looking for more investment ideas?

If Levi Strauss has sharpened your thinking, do not stop here. The right mix of new ideas can be the difference between a good portfolio and a great one.

• Spot potential bargains early by checking companies our screener flags as screener containing 23 high quality undiscovered gems before they appear on everyone else’s watchlist.
• Strengthen your core holdings with businesses that show up in our solid balance sheet and fundamentals stocks screener (42 results), so you are not leaning on fragile financial foundations.
• Add a steadier income tilt by reviewing companies in the 15 dividend fortresses if you want yields that stand out without ignoring fundamentals.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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