Five Below Inc (FIVE) is slightly undervalued and Tractor Supply Co (TSCO) is fairly valued.
Against our estimates of intrinsic value, FIVE trades at the wider discount: a margin of safety of +11%, against -1% for TSCO.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.1% (average of 3 methods) values the shares at $260.16; the price of $232.28 is 11% below that value, and 77% of that value comes from beyond year five.
Leak Score 81/100 on 3 of 12 signals
Discounting its cash flows at 8.0% (average of 3 methods) values the shares at $32.48; the price of $32.84 is 1% above that value, and 79% of that value comes from beyond year five.
Leak Score 55/100 on 10 of 12 signals
| Metric | FIVE | TSCO |
|---|---|---|
| Verdict | Slightly undervalued | Fairly valued |
| Price | $232.28 | $32.84 |
| Intrinsic value | $260.16 | $32.48 |
| Margin of safety | +11% | -1% |
| Leak Score | 81/100 (3/12) | 55/100 (10/12) |
| Market cap | $12.8B | $17.1B |
| Revenue growth, 5 years | 19.4% | 7.9% |
| Operating margin | 14.8% | 8.9% |
| Net margin | 11.7% | 6.4% |
| Return on equity | 28.2% | 39.5% |
| Debt to equity | 0.82 | 2.49 |
| P/E | 20.8x | 17.1x |
| Forward P/E | 21.0x | 16.1x |
| P/B | 5.2x | 6.5x |
| Dividend yield | — | 3.0% |