The Children's Place, Inc.

PLCE

Consumer CyclicalApparel - RetailNASDAQ

$3.36

Market Cap: $74.63M

The Children's Place, Inc. (PLCE) Valuation Summary

Updated May 11, 2026 03:56

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$6.14 – $185.04	$23.53	+600.2%
Revenue DCF 10Y	$1.86 – $95.14	$1.86	-44.7%
▸ Trading Multiples
EV/Revenue	$5.56 – $16.64	$10.46	+211.4%

Valuation History

DCF Analysis

The Children's Place, Inc. (PLCE) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$1.86

Market Price

$3.36

Upside / Downside

-44.7%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -4.3% to a target of 7.7% over 5 years, discounted at a WACC of 6.8%, The Children's Place, Inc. (PLCE) has an intrinsic value of $1.86 per share (range: $1.86 – $95.14).

Key Assumptions

Current Operating Margin

-4.3%

Target Operating Margin

7.7%

WACC

6.8%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.7%

Target CapEx/Rev

6.0%

D&A/Revenue

2.9%

Tax Rate

27.2%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,238	2.4%	-1.9%	-24	-24	36	(26)	-29	15	15
2027	1,066	-13.8%	0.5%	5	4	31	(27)	-30	37	34
2028	1,114	4.5%	2.9%	32	23	33	(33)	8	14	12
2029	1,158	3.9%	5.3%	61	45	34	(40)	8	31	25
2030	1,042	-10.0%	7.7%	80	59	30	(40)	-20	69	51
2031	938	-10.0%	7.7%	72	53	27	(40)	-18	58	40
2032	862	-8.1%	7.7%	67	48	25	(41)	-13	46	30
2033	816	-5.3%	7.7%	63	46	24	(42)	-8	36	22
2034	795	-2.5%	7.7%	61	45	23	(44)	-4	27	16
2035	797	0.2%	7.7%	62	45	23	(48)	0	20	11

Enterprise Value Bridge

Sum of PV(FCFF)256

Terminal Value (Gordon Growth at 3.0%)547

PV of Terminal Value294

Enterprise Value549

(–) Net Debt508

Equity Value41

(÷) Shares Outstanding22

Fair Value per Share$1.86

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
4.8%	$-22	$-12	$24	$59	$95
5.8%	$-22	$-14	$9	$32	$55
6.8%	$-22	$-15	$2	$19	$36
7.8%	$-23	$-16	$-2	$11	$25
8.8%	$-23	$-16	$-5	$6	$17

Current price: $3.36. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 17.2% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

The Children's Place, Inc. (PLCE) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$23.53

Market Price

$3.36

Upside / Downside

+600.2%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-4.3%

Target Operating Margin

7.7%

WACC

6.8%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.7%

Target CapEx/Rev

6.0%

D&A/Revenue

2.9%

Tax Rate

27.2%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,238	2.4%	-1.9%	-24	-24	36	(32)	-29	10	10
2027	1,066	-13.8%	0.5%	5	4	31	(36)	-30	28	25
2028	1,114	4.5%	2.9%	32	23	33	(48)	8	0	0
2029	1,158	3.9%	5.3%	61	45	34	(60)	8	12	9
2030	1,042	-10.0%	7.7%	80	59	30	(63)	-20	46	35

Enterprise Value Bridge

Sum of PV(FCFF)79

Terminal Value (Gordon Growth at 3.0%)1,272

PV of Terminal Value948

Enterprise Value1,027

(–) Net Debt508

Equity Value518

(÷) Shares Outstanding22

Fair Value per Share$23.53

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
4.8%	$-24	$29	$81	$133	$185
5.8%	$-24	$9	$42	$75	$107
6.8%	$-25	$-0	$24	$47	$71
7.8%	$-25	$-6	$13	$32	$50
8.8%	$-25	$-9	$6	$21	$37

Current price: $3.36. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 17.2% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$10.46

Market Price

$3.36

Upside / Downside

+211.4%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), The Children's Place, Inc. (PLCE) has a fair value of $10.46 based on 8 comparable companies in the Apparel - Retail industry.

EV/Revenue Valuation — Apparel - Retail

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
The Children's Place, Inc.PLCE	74	0.5x	0.4x
Designer Brands Inc.DBI	353	0.5x	0.5x
Superior Group of Companies, Inc.SGC	188	0.5x	0.5x
1stdibs.Com, Inc.DIBS	156	1.7x	1.8x
Torrid Holdings Inc.CURV	155	0.6x	0.5x
J.Jill, Inc.JILL	149	0.6x	0.5x
a.k.a. Brands Holding Corp.AKA	123	0.5x	0.5x
Lakeland Industries, Inc.LAKE	105	0.7x	1.0x
BARK, Inc.BARK	78	0.1x	0.2x
Industry Median		0.5x	0.5x
(*) Revenue		1,209	1,549
= Enterprise Value		654	824
(-) Net Debt		508	508
Equity Value		146	315
(/) Outstanding shares		22	22
Fair Price		$7	$14

Selected Fair Value (avg of trailing + forward)

$10.46

+211.4%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$6.14 – $185.04

$23.53

+600.2%

Revenue DCF 10Y

$1.86 – $95.14

$1.86

-44.7%

▸ Trading Multiples

EV/Revenue

$5.56 – $16.64

$10.46

+211.4%

DCF Analysis

The Children's Place, Inc. (PLCE) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$1.86

Market Price

$3.36

Upside / Downside

-44.7%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-4.3%

Target Operating Margin

7.7%

WACC

6.8%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.7%

Target CapEx/Rev

6.0%

D&A/Revenue

2.9%

Tax Rate

27.2%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,238	2.4%	-1.9%	-24	-24	36	(26)	-29	15	15
2027	1,066	-13.8%	0.5%	5	4	31	(27)	-30	37	34
2028	1,114	4.5%	2.9%	32	23	33	(33)	8	14	12
2029	1,158	3.9%	5.3%	61	45	34	(40)	8	31	25
2030	1,042	-10.0%	7.7%	80	59	30	(40)	-20	69	51
2031	938	-10.0%	7.7%	72	53	27	(40)	-18	58	40
2032	862	-8.1%	7.7%	67	48	25	(41)	-13	46	30
2033	816	-5.3%	7.7%	63	46	24	(42)	-8	36	22
2034	795	-2.5%	7.7%	61	45	23	(44)	-4	27	16
2035	797	0.2%	7.7%	62	45	23	(48)	0	20	11

Enterprise Value Bridge

Sum of PV(FCFF)256

Terminal Value (Gordon Growth at 3.0%)547

PV of Terminal Value294

Enterprise Value549

(–) Net Debt508

Equity Value41

(÷) Shares Outstanding22

Fair Value per Share$1.86

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
4.8%	$-22	$-12	$24	$59	$95
5.8%	$-22	$-14	$9	$32	$55
6.8%	$-22	$-15	$2	$19	$36
7.8%	$-23	$-16	$-2	$11	$25
8.8%	$-23	$-16	$-5	$6	$17

Current price: $3.36. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 17.2% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$10.46

Market Price

$3.36

Upside / Downside

+211.4%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), The Children's Place, Inc. (PLCE) has a fair value of $10.46 based on 8 comparable companies in the Apparel - Retail industry.

EV/Revenue Valuation — Apparel - Retail

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
The Children's Place, Inc.PLCE	74	0.5x	0.4x
Designer Brands Inc.DBI	353	0.5x	0.5x
Superior Group of Companies, Inc.SGC	188	0.5x	0.5x
1stdibs.Com, Inc.DIBS	156	1.7x	1.8x
Torrid Holdings Inc.CURV	155	0.6x	0.5x
J.Jill, Inc.JILL	149	0.6x	0.5x
a.k.a. Brands Holding Corp.AKA	123	0.5x	0.5x
Lakeland Industries, Inc.LAKE	105	0.7x	1.0x
BARK, Inc.BARK	78	0.1x	0.2x
Industry Median		0.5x	0.5x
(*) Revenue		1,209	1,549
= Enterprise Value		654	824
(-) Net Debt		508	508
Equity Value		146	315
(/) Outstanding shares		22	22
Fair Price		$7	$14

Selected Fair Value (avg of trailing + forward)

$10.46

+211.4%