Gildan Activewear Inc (GIL) is overvalued and Kontoor Brands Inc (KTB) is undervalued.
Against our estimates of intrinsic value, KTB trades at the wider discount: a margin of safety of +21%, against -65% for GIL.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.5% (average of 3 methods) values the shares at $28.45; the price of $47.01 is 65% above that value, and 78% of that value comes from beyond year five.
Leak Score 0/100 on 3 of 12 signals
Discounting its cash flows at 8.5% (average of 3 methods) values the shares at $86.10; the price of $67.82 is 21% below that value, and 78% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
| Metric | GIL | KTB |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $47.01 | $67.82 |
| Intrinsic value | $28.45 | $86.10 |
| Margin of safety | -65% | +21% |
| Leak Score | 0/100 (3/12) | 100/100 (3/12) |
| Market cap | $8.7B | $3.7B |
| Revenue growth, 5 years | 12.8% | 8.5% |
| Operating margin | 15.2% | 13.1% |
| Net margin | 1.3% | 8.7% |
| Return on equity | 8.7% | 41.0% |
| Debt to equity | 1.45 | 2.06 |
| P/E | 88.7x | 14.2x |
| Forward P/E | 8.4x | 10.3x |
| P/B | 2.6x | 6.0x |
| Dividend yield | 2.1% | 3.1% |