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FIGS (FIGS) Following Its Sharp Rally Still Looks Pricey On The Popular View

Simply Wall St · 1d ago

FIGS (FIGS) has drawn attention after recent trading left the stock with a roughly 51% gain over the past month and a very large 267% total return over three years.

The recent surge in FIGS comes on top of strong momentum, with a 30 day share price return of 50.52% and a 90 day move of 95.55%. This has left the stock at US$20.20 and contributed to a 147.85% 1 year total shareholder return despite a weaker 5 year record.

Scan beyond FIGS and see how its sharp share price move compares with other fast moving consumer stocks using our curated list of 21 high quality undiscovered gems.

For FIGS, a 147.85% 1 year return and strong recent momentum raise a simple tension: Is this mainly a catch up to the healthcare apparel business, or a burst of optimism that the valuation now needs to justify?

Most Popular Narrative: 40.4% Overvalued

On the most followed valuation view for FIGS, the fair value sits at $14.39 against the recent $20.20 close. This points to a rich price that the business will need to earn into over time.

The company, on an absolute basis, is still growing well. Further, it has several growth levers, such as expanding its product range, entering new markets, and leaning into its “TEAMS” offering.

See why 24 investors see FIGS as 40% overvalued.

Result: Fair Value of $14.39 (OVERVALUED)

Still, FIGS faces clear swing factors, including pressure to keep margins moving toward its 15% EBITDA target and the risk that premium pricing encounters softer demand.

Find out about the key risks to this FIGS narrative.

Next Steps

Mixed feelings about FIGS after this kind of run are entirely reasonable. Take a moment to review the full picture of risks and potential upside captured in 2 key rewards and 1 important warning sign.

Looking for more FIGS style investment ideas?

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