As of 2025-07-12, the Fair Value of Abercrombie & Fitch Co (ANF) is 279.59 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 89.34 USD, the upside of Abercrombie & Fitch Co is 213%.
With the market price of 89.34 USD and our fair value calculation, Abercrombie & Fitch Co (ANF) is a good investment. Investing in ANF stocks now will result in a potential gain of 213%.
Peter Lynch's formula is:
The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.
Historical Earnings | ||||||
01-2021 | 01-2022 | 01-2023 | 02-2024 | 02-2025 | 5Y Avg | |
Net income | -114 | 263 | 2.8 | 328.12 | 566.22 | 209 |
YoY growth | -389.3% | 330.7% | -98.9% | 11618.7% | 72.6% | 2306.7% |
Market Cap (mil) | 4,256 |
P/E | 8x |
Forward P/E | 7.2x |
EPS | 11.18 |
Avg earnings growth rate | 2306.7% |
TTM earnings | 533 |
Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.
Therefore, his formula to determine a company's fair value is:
Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG
PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.