Vera Bradley, Inc.

VRA

Consumer CyclicalApparel - Footwear & AccessoriesNASDAQ

$4.00

Market Cap: $111.86M

Vera Bradley, Inc. (VRA) Valuation Summary

Updated Apr 16, 2026 22:14

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.60 – $58.33	$7.46	+97.3%
Revenue DCF 10Y	$1.19 – $26.49	$2.34	-38.2%
▸ Trading Multiples
EV/Revenue	$4.05 – $10.51	$7.13	+88.5%

Valuation History

DCF Analysis

Vera Bradley, Inc. (VRA) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$2.34

Market Price

$4.00

Upside / Downside

-41.5%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -12.3% to a target of 7.7% over 5 years, discounted at a WACC of 5.9%, Vera Bradley, Inc. (VRA) has an intrinsic value of $2.34 per share (range: $1.19 – $26.49).

Key Assumptions

Current Operating Margin

-12.3%

Target Operating Margin

7.7%

WACC

5.9%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.5%

Target CapEx/Rev

11.4%

D&A/Revenue

7.6%

Tax Rate

27.5%

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)
2027	263	-2.4%	-8.3%	-22	-22	20	(7)	-4	-4	-4
2028	270	2.5%	-4.3%	-12	-12	21	(9)	2	-2	-2
2029	243	-10.0%	-0.3%	-1	-1	19	(11)	-7	14	12
2030	219	-10.0%	3.7%	8	6	17	(12)	-7	17	14
2031	197	-10.0%	7.7%	15	11	15	(13)	-6	19	15
2032	177	-10.0%	7.7%	14	10	14	(13)	-5	16	11
2033	160	-9.6%	7.7%	12	9	12	(14)	-5	12	8
2034	150	-6.5%	7.7%	12	8	11	(14)	-3	9	6
2035	145	-3.3%	7.7%	11	8	11	(15)	-1	5	3
2036	144	-0.2%	7.7%	11	8	11	(17)	-0	3	2

Enterprise Value Bridge

Sum of PV(FCFF)66

Terminal Value (Gordon Growth at 3.0%)92

PV of Terminal Value54

Enterprise Value119

(–) Net Debt52

Equity Value67

(÷) Shares Outstanding29

Fair Value per Share$2.34

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
3.9%	$-1	$-0	$8	$17	$26
4.9%	$-1	$-0	$4	$8	$13
5.9%	$-1	$-0	$2	$5	$9
6.9%	$-1	$-0	$2	$4	$6
7.9%	$-1	$-1	$1	$3	$5

Current price: $4.00. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 27.7% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Vera Bradley, Inc. (VRA) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$7.46

Market Price

$4.00

Upside / Downside

+86.5%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-12.3%

Target Operating Margin

7.7%

WACC

5.9%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.5%

Target CapEx/Rev

11.4%

D&A/Revenue

7.6%

Tax Rate

27.5%

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)
2027	263	-2.4%	-8.3%	-22	-22	20	(9)	-4	-7	-7
2028	270	2.5%	-4.3%	-12	-12	21	(15)	2	-8	-7
2029	243	-10.0%	-0.3%	-1	-1	19	(18)	-7	7	6
2030	219	-10.0%	3.7%	8	6	17	(21)	-7	9	7
2031	197	-10.0%	7.7%	15	11	15	(23)	-6	10	7

Enterprise Value Bridge

Sum of PV(FCFF)7

Terminal Value (Gordon Growth at 3.0%)336

PV of Terminal Value259

Enterprise Value266

(–) Net Debt52

Equity Value214

(÷) Shares Outstanding29

Fair Value per Share$7.46

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
3.9%	$1	$15	$30	$44	$58
4.9%	$-1	$6	$13	$20	$27
5.9%	$-2	$3	$7	$12	$17
6.9%	$-2	$1	$5	$8	$12
7.9%	$-2	$1	$3	$6	$9

Current price: $4.00. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 27.7% 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

$7.13

Market Price

$4.00

Upside / Downside

+78.2%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Vera Bradley, Inc. (VRA) has a fair value of $7.13 based on 9 comparable companies in the Apparel - Footwear & Accessories industry.

EV/Revenue Valuation — Apparel - Footwear & Accessories

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Vera Bradley, Inc.VRA	115	0.6x	0.4x
Lifetime Brands, Inc.LCUT	165	0.6x	0.6x
Commercial Vehicle Group, Inc.CVGI	147	0.4x	0.3x
Allbirds, Inc.BIRD	89	0.7x	0.5x
Regis CorporationRGS	65	1.8x	1.3x
The ONE Group Hospitality, Inc.STKS	55	0.9x	0.9x
The Cato CorporationCATO	54	0.3x	0.2x
Century Casinos, Inc.CNTY	43	1.8x	1.8x
Northann Corp.NCL	16	1.3x	—
GreenPower Motor Company Inc.GP	3	1.1x	0.6x
Industry Median		0.9x	0.6x
(*) Revenue		270	457
= Enterprise Value		235	279
(-) Net Debt		52	52
Equity Value		183	227
(/) Outstanding shares		29	29
Fair Price		$6	$8

Selected Fair Value (avg of trailing + forward)

$7.13

+78.2%

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

$0.60 – $58.33

$7.46

+97.3%

Revenue DCF 10Y

$1.19 – $26.49

$2.34

-38.2%

▸ Trading Multiples

EV/Revenue

$4.05 – $10.51

$7.13

+88.5%

DCF Analysis

Vera Bradley, Inc. (VRA) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$2.34

Market Price

$4.00

Upside / Downside

-41.5%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-12.3%

Target Operating Margin

7.7%

WACC

5.9%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.5%

Target CapEx/Rev

11.4%

D&A/Revenue

7.6%

Tax Rate

27.5%

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)
2027	263	-2.4%	-8.3%	-22	-22	20	(7)	-4	-4	-4
2028	270	2.5%	-4.3%	-12	-12	21	(9)	2	-2	-2
2029	243	-10.0%	-0.3%	-1	-1	19	(11)	-7	14	12
2030	219	-10.0%	3.7%	8	6	17	(12)	-7	17	14
2031	197	-10.0%	7.7%	15	11	15	(13)	-6	19	15
2032	177	-10.0%	7.7%	14	10	14	(13)	-5	16	11
2033	160	-9.6%	7.7%	12	9	12	(14)	-5	12	8
2034	150	-6.5%	7.7%	12	8	11	(14)	-3	9	6
2035	145	-3.3%	7.7%	11	8	11	(15)	-1	5	3
2036	144	-0.2%	7.7%	11	8	11	(17)	-0	3	2

Enterprise Value Bridge

Sum of PV(FCFF)66

Terminal Value (Gordon Growth at 3.0%)92

PV of Terminal Value54

Enterprise Value119

(–) Net Debt52

Equity Value67

(÷) Shares Outstanding29

Fair Value per Share$2.34

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
3.9%	$-1	$-0	$8	$17	$26
4.9%	$-1	$-0	$4	$8	$13
5.9%	$-1	$-0	$2	$5	$9
6.9%	$-1	$-0	$2	$4	$6
7.9%	$-1	$-1	$1	$3	$5

Current price: $4.00. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 27.7% 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

$7.13

Market Price

$4.00

Upside / Downside

+78.2%

Verdict

Undervalued

EV/Revenue Valuation — Apparel - Footwear & Accessories

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Vera Bradley, Inc.VRA	115	0.6x	0.4x
Lifetime Brands, Inc.LCUT	165	0.6x	0.6x
Commercial Vehicle Group, Inc.CVGI	147	0.4x	0.3x
Allbirds, Inc.BIRD	89	0.7x	0.5x
Regis CorporationRGS	65	1.8x	1.3x
The ONE Group Hospitality, Inc.STKS	55	0.9x	0.9x
The Cato CorporationCATO	54	0.3x	0.2x
Century Casinos, Inc.CNTY	43	1.8x	1.8x
Northann Corp.NCL	16	1.3x	—
GreenPower Motor Company Inc.GP	3	1.1x	0.6x
Industry Median		0.9x	0.6x
(*) Revenue		270	457
= Enterprise Value		235	279
(-) Net Debt		52	52
Equity Value		183	227
(/) Outstanding shares		29	29
Fair Price		$6	$8

Selected Fair Value (avg of trailing + forward)

$7.13

+78.2%