Is Victoria's Secret (VSCO) Share Price Run Justified By Discounted Cash Flow Estimates

Simply Wall St.01-11

If you are wondering whether Victoria's Secret stock still offers value after its recent run, this article will walk through what the current price might be telling you. The shares last closed at US$...

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The shares last closed at US$...</p>\n\n<a href=\"https://simplywall.st/stocks/us/retail/nyse-vsco/victorias-secret/news/is-victorias-secret-vsco-share-price-run-justified-by-discou\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Victoria's Secret (VSCO) Share Price Run Justified By Discounted Cash Flow Estimates</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Victoria's Secret (VSCO) Share Price Run Justified By Discounted Cash Flow Estimates\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-11 18:17 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/retail/nyse-vsco/victorias-secret/news/is-victorias-secret-vsco-share-price-run-justified-by-discou><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether Victoria's Secret stock still offers value after its recent run, this article will walk through what the current price might be telling you. The shares last closed at US$...</p>\n\n<a href=\"https://simplywall.st/stocks/us/retail/nyse-vsco/victorias-secret/news/is-victorias-secret-vsco-share-price-run-justified-by-discou\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"VSCO","symbol_name":"维多利亚的秘密","start_time":0,"source_url":"https://simplywall.st/stocks/us/retail/nyse-vsco/victorias-secret/news/is-victorias-secret-vsco-share-price-run-justified-by-discou","article_id":"2602955961","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4441000-choice2-main-header/1585186771078"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/retail/nyse-vsco/victorias-secret/news/is-victorias-secret-vsco-share-price-run-justified-by-discou","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2602955961","pubTimestamp":1768126638,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Victoria's Secret stock still offers value after its recent run, this article will walk through what the current price might be telling you.\nThe shares last closed at US$65.90, with returns of 23.5% over the past week, 20.9% over the last 30 days, 23.5% year to date, 75.4% over 1 year, and 71.7% over 3 years.\nRecent coverage has focused on Victoria's Secret as a standalone brand and retailer. Investors are paying close attention to how it is repositioning itself...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"VSCO":"维多利亚的秘密","BK4585":"ETF&股票定投概念","IE00B19Z4B17.USD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY \"A\" (USD) ACC","IE00B7SZL793.SGD":"Legg Mason Royce - US Small Cap Opportunity A Acc SGD-H","LU1878469433.USD":"THREADNEEDLE (LUX) - AMERICAN SMALLER COMPANIES \"A\" (USD) ACC","IE00B66KJ199.SGD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY  \" A\" (SGD) ACC","BK4094":"服装零售","IE0031619046.USD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY \"A\" (USD) INC","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","BK4588":"碎股"},"translate_title":"维多利亚的秘密(VSCO)股价上涨是否符合贴现现金流估计的合理性","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"VSCO":1.5,"DCF":1},"content_text":"If you are wondering whether Victoria's Secret stock still offers value after its recent run, this article will walk through what the current price might be telling you. The shares last closed at US$65.90, with returns of 23.5% over the past week, 20.9% over the last 30 days, 23.5% year to date, 75.4% over 1 year, and 71.7% over 3 years. Recent coverage has focused on Victoria's Secret as a standalone brand and retailer. Investors are paying close attention to how it is repositioning itself in the market and managing its store and product portfolio. These developments help frame how the current share price lines up with the business today. On Simply Wall St's 6 point valuation checklist, Victoria's Secret scores 2 out of 6. We will walk through what different valuation methods say about that score and then finish by looking at a broader way to think about valuation beyond the numbers alone.  Victoria's Secret scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: Victoria's Secret Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow model projects a company’s future cash flows and then discounts them back to today’s dollars to estimate what the business might be worth right now. For Victoria's Secret, the model uses a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections. The latest twelve month free cash flow is about $282.9 million. Analyst inputs and extrapolated estimates look out over the next decade, with projected free cash flow for 2028 of $448.0 million and further annual figures up to 2035 generated by Simply Wall St’s model. Pulling those projections together, the DCF model arrives at an estimated intrinsic value of about $96.43 per share. Compared with the recent share price of $65.90, this implies the stock trades at roughly a 31.7% discount to that DCF estimate. This points to a potentially undervalued setup on this method alone. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Victoria's Secret is undervalued by 31.7%. Track this in your watchlist or portfolio, or discover 882 more undervalued stocks based on cash flows. VSCO Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Victoria's Secret. Approach 2: Victoria's Secret Price vs Earnings For profitable companies, the P/E ratio is a useful way to see how much you are paying for each dollar of earnings, which is why it is the preferred multiple here. A higher P/E usually reflects higher growth expectations or lower perceived risk, while a lower P/E can point to lower growth expectations or higher perceived risk. Victoria's Secret currently trades on a P/E of 31.12x. That is above the Specialty Retail industry average of 21.01x and the peer average of 19.10x. Simply Wall St’s Fair Ratio for Victoria's Secret is 21.79x. This Fair Ratio is a proprietary estimate of what a more normal P/E might look like for the company, given factors such as its earnings growth profile, profit margins, industry, market cap and risk characteristics. Compared with a simple industry or peer comparison, the Fair Ratio aims to be more tailored to the company’s specific fundamentals rather than a broad group average. Setting the current 31.12x P/E against the 21.79x Fair Ratio suggests the shares are pricing in a richer multiple than the model would indicate. Result: OVERVALUED NYSE:VSCO P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1444 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Victoria's Secret Narrative Earlier we mentioned that there is an even better way to think about valuation, and on Simply Wall St that starts with Narratives. These are the stories investors build around a company that connect their view of its future revenue, earnings and margins to a financial forecast, a Fair Value estimate and then to a clear comparison with today’s price. All of this happens within an easy to use tool on the Community page that updates when new news or earnings arrive. For Victoria's Secret, one investor might build a higher value Narrative that leans into brand transformation, omnichannel growth and data driven operations. Another might create a lower value Narrative that focuses on tariff exposure, brick and mortar reliance and competition risk. By comparing each Narrative’s Fair Value to the current share price, you have a practical framework to decide whether the stock looks like a buy, a hold or a sell to you, based on your own assumptions rather than relying solely on a single model or external target. Do you think there's more to the story for Victoria's Secret? Head over to our Community to see what others are saying! NYSE:VSCO 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    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\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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