Victoria's Secret stock rises amid valuation analysis insights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 31 2026
0mins
Should l Buy VSCO?
Source: Yahoo Finance
Victoria's Secret shares increased by 5.81% as it crossed above its 5-day SMA, closing at $54.51.
The stock's performance reflects a 49.9% return over the past year, with a DCF model suggesting it is undervalued by 41.3%, potentially attracting value-focused investors. Despite recent volatility, the brand's strength and profit expectations remain positive, encouraging investor engagement in community discussions.
This upward movement may indicate renewed investor confidence as the company navigates its valuation challenges and market positioning.
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Analyst Views on VSCO
Wall Street analysts forecast VSCO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for VSCO is 53.40 USD with a low forecast of 29.00 USD and a high forecast of 73.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
4 Buy
7 Hold
0 Sell
Moderate Buy
Current: 59.020
Low
29.00
Averages
53.40
High
73.00
Current: 59.020
Low
29.00
Averages
53.40
High
73.00
About VSCO
Victoria's Secret & Co. is a specialty retailer of women's intimate and other apparel and beauty products marketed under the Victoria's Secret, PINK, and Adore Me brand names. The Company offers a range of products including bras, panties, lingerie, casual sleepwear, apparel, sport and swim, as well as prestige fragrances and body care. Victoria’s Secret brand offers bras, panties, lingerie, casual sleepwear, swim, lounge and sport, as well as fragrances and body care. PINK is a lifestyle brand for young women providing variety of collections and heritage pieces, including apparel, loungewear, activewear, bras, panties, accessories, beauty, and others. Adore Me is a direct-to-consumer lingerie and apparel brand that is focused on serving women of all sizes and budgets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Brand Opportunities: Brands like Abercrombie & Fitch could leverage this nostalgia wave to reshape their image, particularly if they successfully distance themselves from past controversies, potentially attracting more young consumers.
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- Return to Brick-and-Mortar: Young consumers are rediscovering the appeal of in-store shopping after years dominated by e-commerce, reflecting a longing for the carefree and familiar comfort of 2016, which could stimulate a retail resurgence.
- Brand Opportunities Arise: Brands like Abercrombie & Fitch and Levi Strauss, which held significant cultural relevance in 2016, may leverage this nostalgia wave to regain market traction, especially as consumers show renewed interest in classic styles.
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- Valuation Assessment: The DCF model indicates that Victoria's Secret's free cash flow was $282.9 million over the past twelve months, with projections of $448.0 million by 2028, suggesting the stock is undervalued by 41.3%, which could attract value-focused investors.
- P/E Ratio Analysis: Currently, Victoria's Secret trades at a P/E ratio of 25.74x, above the industry average of 19.29x and peer average of 16.66x, indicating potential overvaluation, prompting investors to carefully assess risk versus reward.
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- Phase Analysis: The stock is currently in Phase 2 of the Adhishthana cycle, still within the Sankhya period, which typically features consolidation and sluggish price movements rather than a persistent rally.
- Volatility Risks: Aggressive rallies during the Sankhya period are often unstable, with historical patterns indicating that such deviations tend to be corrected as the stock transitions into the Buddhi period, potentially leading to sharp price reversals.
- Investor Outlook: While the stock may continue to rise in the short term, the unfavorable structural positioning raises concerns about long-term sustainability, necessitating vigilance and risk management as volatility is likely to increase with the approaching Buddhi transition.
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