Cato Corporation (CATO) fair value: what the stock is really worth
As of Oct 12, 2026: fair value of Cato Corporation $5.27, price $2.39, upside +120.5%, quality 53 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 2, 2026.
How to read this chart
60‑month range $2.27 – $15.31 · fair‑value band $3.93 – $7.86 · the $2.39 price screens below the $5.27 fair value. Dashed = 300-day average. As of Oct 2, 2026.
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The Cato Corporation, together with its subsidiaries, operates as a specialty retailer of fashion apparel and accessories primarily in the southeastern United States. It operates through two segments, Retail and Credit.
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The Cato Corporation, together with its subsidiaries, operates as a specialty retailer of fashion apparel and accessories primarily in the southeastern United States. It operates through two segments, Retail and Credit. The company's stores and e-commerce websites offer a range of apparel and accessories, including dressy, career, and casual sportswear; and dresses, coats, shoes, lingerie, costume jewelry, and handbags, as well as men's wear, and lines for kids and infants. It operates its stores and e-commerce websites under the Cato, Cato Fashions, Cato Plus, It's Fashion, It's Fashion Metro, and Versona names. It also provides credit card services and layaway plans for customers. The Cato Corporation was incorporated in 1946 and is headquartered in Charlotte, North Carolina.
Stock analysis
Cato Corporation (CATO) currently trades at $2.39, while our model-based Fair Value estimate is $5.27, implying the stock looks roughly 54.6% undervalued today.
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Valuation
How firm this estimate is: it rests on 1 models at a data quality of 96/100, which puts the evidence level at low.
Scenario range: $3.93 (bear) to $7.86 (bull), the price of $2.39 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 53/100 (solid quality), in the Consumer Cyclical sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Cato Corporation reported revenue of $654M in FY2026 versus $769M in FY2022, a compound −4.0%/yr. Reported net income was −$5.9M in FY2026.
Key figures
Market cap $45.8M · P/S ratio 0.07 · EPS (TTM) $−0.2900 · Net margin −0.9% · Return on equity −3.3% · Return on assets (EBIT) −1.5% · Operating margin −0.6% · Revenue (TTM) $644M.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 28 out of 100 (medium confidence).
What moves the price
The share trades about 45% below its 52-week high and 2% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −11% fair-value upside, at 121%, CATO screens cheaper than that median.
Fair Value models
Bear $3.93Fair Value $5.27Bull $7.86
Price $2.39 · Upside +120.5%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.17/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+0.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−4.9%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.6%
Start year 2021 (pandemic). Over 10 years: −4.3% a year
Revenue growth 39 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.3%
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Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
−11.4% (2021) → −2.2% (2026)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2026 is a loss year, no rate is defined from a loss
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Apparel Retail · 102 stocks
Beats the industry median on 4/9 measures
A mixed picture versus its industry peers.
Valuation
Quality Score53 · Below median
Fair Value upside+120.5% · Top 25%
Profitability
Return on assets−2.1% · Bottom 25%
Net margin (TTM)−0.9% · Bottom 25%
Operating margin (TTM)−0.6% · Bottom 25%
Growth and dividend
Revenue growth−6.2% · Bottom 25%
Valuation Multiplesvs Apparel Retail median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Cato Corporation Fair Value". https://www.fairvalue-calculator.com/stock/CATO
Frequently asked questions
Is Cato Corporation (CATO) overvalued or undervalued?
As of Oct 2, 2026, our model estimates a fair value of $5.27 versus a price of $2.39, about +121% upside (undervalued).
What is the fair value of CATO?
Our model-based fair value for Cato Corporation is $5.27 (as of Oct 2, 2026), built from audited fundamentals. The current price: $2.39.
What is the quality score of CATO?
Cato Corporation has a Quality Score of 53/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Cato Corporation (CATO)?
Our model-based price target is the fair value of $5.27 (as of Oct 2, 2026) from 2 valuation models. Cautious scenario $3.93, optimistic scenario $7.86. It is a calculation from audited fundamentals, not an analyst target.
What is the Cato Corporation stock forecast for 2026?
Our models put fair value at $5.27, about +121% upside versus a price of $2.39 (undervalued). Cautious scenario $3.93, optimistic scenario $7.86. The calculation is refreshed regularly with new filings.
What is the revenue of Cato Corporation (CATO)?
Cato Corporation reported trailing-twelve-month revenue of about $644M (latest available figure, as of Oct 2, 2026).
What is the intrinsic value of Cato Corporation (CATO)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Cato Corporation it is $5.27 per share (as of Oct 2, 2026), against a price of $2.39. It is the blended result of 2 valuation models (cash flow, earnings, asset, dividend).
Is Cato Corporation stock overvalued or undervalued in 2026?
As of Oct 2, 2026, CATO trades below its calculated fair value: price $2.39, fair value $5.27, a gap of about +121% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of CATO?
No. The price is what the market pays today ($2.39); the fair value is what the company's own numbers justify ($5.27). For Cato Corporation the two are $2.88 per share apart. That gap is exactly why we show both numbers side by side.
How much is Cato Corporation worth?
The market values Cato Corporation at about $45.8M (market capitalisation, as of Oct 2, 2026). Per share that is $2.39; our models calculate a fair value of $5.27 per share.
What do the bullish and bearish scenarios say about CATO?
Our models span a range for Cato Corporation: cautious scenario $3.93, base $5.27, optimistic $7.86 per share (as of Oct 2, 2026, price $2.39). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the PEG ratio of CATO?
The PEG ratio of Cato Corporation is 1.17 (P/E divided by earnings growth, as of Oct 2, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Cato Corporation (CATO)?
Balance-sheet figures for Cato Corporation (as of Oct 2, 2026): return on equity −3.3%. They feed the Quality Score of 53/100, which measures business quality independently of the share price.
How far is CATO from its 52-week high?
Cato Corporation trades at $2.39, about 45% below its 52-week high of $4.36 and 2% above the low of $2.34 (as of Oct 12, 2026). Distance from the high says nothing about value: that is what the fair value of $5.27 is for.
Which stocks are comparable to Cato Corporation?
From the same area (Consumer Cyclical) we also value Industria de Diseño Textil, S.A, The TJX Companies, Inc, Fast Retailing Co, Ross Stores, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Cato Corporation stock attractive at the current price?
The data as of Oct 2, 2026: price $2.39, calculated fair value $5.27 (+121%), Quality Score 53/100, from 2 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of CATO calculated?
We run Cato Corporation through 2 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $5.27, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.8 % above its aggregate fair value. Cato Corporation currently trades 55 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Cato Corporation (CATO)?
The closing price on Oct 12, 2026 was $2.39. Our model-based fair value is $5.27, about +121% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Cato Corporation right now?
The price is below even our cautious bear case ($3.93). The market is more pessimistic than our downside scenario. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid quality (53/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($3.93 to $7.86) leaves room in how you read the outcome.
Key figures of Cato Corporation
How large is the market capitalisation of Cato Corporation (CATO)?
The market capitalisation of Cato Corporation is $45.8M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Cato Corporation (CATO)?
The price-to-sales ratio of Cato Corporation is 0.07 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Cato Corporation (CATO)?
Earnings per share at Cato Corporation are $−0.2900. Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Cato Corporation (CATO)?
The net margin of Cato Corporation is −0.9% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Cato Corporation (CATO)?
The return on equity (ROE) of Cato Corporation is −3.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Cato Corporation (CATO)?
On an EBIT basis the return on assets of Cato Corporation is −1.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Cato Corporation (CATO)?
The operating margin of Cato Corporation is −0.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Cato Corporation (CATO)?
Revenue at Cato Corporation is growing −6.2% versus a year earlier (3y avg −4.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Cato Corporation (CATO)?
Earnings per share at Cato Corporation are growing −83.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Cato Corporation (CATO) generate?
The free cash flow of Cato Corporation is −$5.2M (fiscal year 2026). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Cato Corporation (CATO) carry?
The net debt of Cato Corporation is $131M (fiscal year 2026). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Thin data
Oct 2, 2026