* Note: Prices are in Million (M) USD.
Description:
Citi Trends, Inc. is a retailer of affordable fashion clothing, accessories and home goods. The company is headquartered in Savannah, Georgia.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $81 M
Debt : $44 M
EBITDA : $31 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Consumer cyclical
Industry: Apparel retail
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 33.83
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Error: Invalid cash flow data provided.Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2026-01-31): $820 M
Revenue 5 Years Ago (2021-01-31): $783 M
Total Growth over 5 Years: 4.7%
5-Year Revenue CAGR (Historical): 0.9%
Forward 5-Year CAGR (Tapered): 0.8%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2026-01-31): $8 M
Share Count 5 Years Ago (2022-01-31): $9 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.38
Trailing 12-Month Earnings Per Share (EPS): $1.57
Average Earnings Per Share (EPS): $1.97
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 8.1%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $66.72
52-Week Low: $28.44
Threshold Price (15% Above 52-Week Low): $32.71
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $557 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 1% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 16 points to above Citi Trends Inc (CTRN) stock.
Fair Value PE
12, Industry Based PE
15, ROE Based PE
8.11, Risk-Free Anchored PE (25% MoS)
16.78. Based on these 4 values, average assigned is
12.97. Value-Trades has assined P/E value
12.97. An average (Current Year EPS + Next Year EPS) earning per share is
$1.9725.
Fair value using multiple P/Es (blended): $25.59 (PE 12.97 × EPS $1.97)
So the Final Fair Value is: $25.59
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $1.97
| Source |
P/E Ratio |
Implied Fair Value |
| Value-Trades Assigned | 12.97 | $25.58 |
