Thoughts on Jos. A. Bank Clothiers Inc (JOSB) Valuation

Do I really think Jos. A. Bank Clothiers Inc (NASDAQ:JOSB) will continue with 0% FCF growth? No way.

It is also too high in quality to trade at NCAV or tangible book value.

So at this point, I know that the fair value must lie between $28 and max $45.

Assuming that my slowing down prediction is correct, then my fair value estimate ranges between $35 to $40.

Right now, it’s trading just above my fair value range.

Jos. A. Bank Clothiers Inc (NASDAQ:JOSB) is actually a company that I’ve looked at since 2009. It was in the Best Small Companies list by Forbes and for some reason I ended up buying worse retail stocks. However, if Jos. A Bank decides to come back within my buy range, I am eager to snap up shares this time around.

Disclosure

No position

Jae Jun is the founder of Old School Value on a mission to provide practical and actionable value investing tools, tutorials and educational material.