Kontoor Brands Inc (KTB) is undervalued and Levi Strauss & Co (LEVI) is fairly valued.
Against our estimates of intrinsic value, KTB trades at the wider discount: a margin of safety of +21%, against +5% for LEVI.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 9.8% (average of 3 methods) values the shares at $21.08; the price of $20.06 is 5% below that value, and 73% of that value comes from beyond year five.
Leak Score 43/100 on 3 of 12 signals
| Metric | KTB | LEVI |
|---|---|---|
| Verdict | Undervalued | Fairly valued |
| Price | $67.82 | $20.06 |
| Intrinsic value | $86.10 | $21.08 |
| Margin of safety | +21% | +5% |
| Leak Score | 100/100 (3/12) | 43/100 (3/12) |
| Market cap | $3.7B | $7.7B |
| Revenue growth, 5 years | 8.5% | 7.1% |
| Operating margin | 13.1% | 11.6% |
| Net margin | 8.7% | 7.3% |
| Return on equity | 41.0% | 25.4% |
| Debt to equity | 2.06 | 1.01 |
| P/E | 14.2x | 16.4x |
| Forward P/E | 10.3x | 11.7x |
| P/B | 6.0x | 3.4x |
| Dividend yield | 3.1% | 3.0% |