DAVIDsTEA Inc. (DTEAF) fair value: what the stock is really worth
We calculate from audited financials what DAVIDsTEA Inc. is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 13, 2026.
How to read this chart
60‑month range $0.0900 – $5.43 · fair‑value band $0.8600 – $1.42 · the $0.7100 price screens below the $1.11 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 13, 2026.
DAVIDsTEA Inc. operates as a tea retailer in Canada and the United States. It offers loose-leaf teas, pre-packaged teas, tea sachets, tea-related gifts, and tea accessories and tea wares. The company also provides its products through an e-commerce platform, davidstea.com; the Amazon marketplace, its wholesale customers; and company-owned storefronts.
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DAVIDsTEA Inc. operates as a tea retailer in Canada and the United States. It offers loose-leaf teas, pre-packaged teas, tea sachets, tea-related gifts, and tea accessories and tea wares. The company also provides its products through an e-commerce platform, davidstea.com; the Amazon marketplace, its wholesale customers; and company-owned storefronts. DAVIDsTEA Inc. was incorporated in 2008 and is headquartered in Montreal, Canada.
Stock analysis
DAVIDsTEA Inc. (DTEAF) currently trades at $0.7100, while our model-based Fair Value estimate is $1.11, implying the stock looks roughly 36.0% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $2.00 per share, and 21 of the 22 models we run sit above the $0.7100 price.
Bear case: the Asset-Based group reads lowest at $0.5400, and 1 of the 22 models stay below the price. Evidence for this calculation is low.
Scenario range: $0.8600 (bear) to $1.42 (bull), the price of $0.7100 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 60/100 (solid quality), in the Consumer Defensive sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
DAVIDsTEA Inc. reported revenue of C$61.1M in FY2026 versus C$104M in FY2022, a compound −12.5%/yr. Reported net income was C$2.9M in FY2026, compounding −53.4%/yr from FY2022.
Key figures
Market cap $20.4M · P/E ratio 8.9 · P/S ratio 0.42 · EPS (TTM) $0.0800 · Net margin 4.8% · Return on equity 14.6% · Return on assets (EBIT) −7.2% · Operating margin 1.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 48 out of 100 (low confidence).
What moves the price
The share trades about 23% below its 52-week high and 64% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Defensive peers we cover trades at −8% fair-value upside, at 56%, DTEAF screens cheaper than that median.
Fair Value models
Bear $0.8600Fair Value $1.11Bull $1.42
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. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then ($0.0495 per share) are deliberately not added.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.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.37/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+43.7%
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.
−1.3%
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.
−12.9%
Revenue growth 9 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.
−10.4%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−46.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year−46.1%
Dividend (yield on the price)0.0%
Profit margin 2020 to 2026 ⓘ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.−5% → 6%
⚠ Revenue per share shrinking 17.8%/yr over ~7Y (margin trend unclear) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
Price in line with expectations
The price assumes about as much growth as the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−15.3%
Yearly growth needed for the next five years to justify today's price.
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.Packaged Foods · 647 stocks
Beats the industry median on 7/12 measures
A mixed picture versus its industry peers.
Valuation
Quality Score60 · Above median
Fair Value upside−35% · Below median
Profitability
Return on equity (TTM)15% · Top 25%
Return on assets4% · Below median
Net margin (TTM)5% · Above median
Operating margin (TTM)2% · Bottom 25%
Growth and dividend
Revenue growth−5% · Bottom 25%
Valuation Multiplesvs Packaged Foods 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). "DAVIDsTEA Inc. Fair Value". https://www.fairvalue-calculator.com/stock/DTEAF
Frequently asked questions
Is DAVIDsTEA Inc. (DTEAF) overvalued or undervalued?
As of Sep 13, 2026, our model estimates a fair value of $1.11 versus a price of $0.7100, about +56% upside (undervalued).
What is the fair value of DTEAF?
Our model-based fair value for DAVIDsTEA Inc. is $1.11 (as of Sep 13, 2026), built from audited fundamentals. The current price: $0.7100.
What is the quality score of DTEAF?
DAVIDsTEA Inc. has a Quality Score of 60/100. 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 DAVIDsTEA Inc. (DTEAF)?
Our model-based price target is the fair value of $1.11 (as of Sep 13, 2026) from 22 valuation models. Cautious scenario $0.8600, optimistic scenario $1.42. It is a calculation from audited fundamentals, not an analyst target.
What is the DAVIDsTEA Inc. stock forecast for 2026?
Our models put fair value at $1.11, about +56% upside versus a price of $0.7100 (undervalued). Cautious scenario $0.8600, optimistic scenario $1.42. The calculation is refreshed regularly with new filings.
What is the revenue of DAVIDsTEA Inc. (DTEAF)?
DAVIDsTEA Inc. reported trailing-twelve-month revenue of about $60.3M (latest available figure, as of Sep 13, 2026).
What growth is priced into DAVIDsTEA Inc. (DTEAF)?
For today's price to be fair in a discounted-cash-flow model, DAVIDsTEA Inc. would have to grow free cash flow by -15.3 % per year for five years (discount rate 10.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew -12.9 % per year. As of Sep 13, 2026.
What discount rate (WACC) does the fair value of DTEAF use?
Our models discount DAVIDsTEA Inc. at 10.5 %: a base by market capitalisation (nano), damped by beta 1.30, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For DAVIDsTEA Inc. that is -15.3 % per year a year over ten years, using the same discount rate (10.5 %) and the same formula as our fair value.
How much growth has DAVIDsTEA Inc. (DTEAF) delivered so far?
Over the past 5 years revenue at DAVIDsTEA Inc. grew -12.9 % a year. The price currently implies -15.3 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of DAVIDsTEA Inc. (DTEAF) growing?
The median revenue growth in the sector is +3.0 % a year. That is the yardstick for the growth priced into DAVIDsTEA Inc. (-15.3 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of DAVIDsTEA Inc. (DTEAF)?
The free-cash-flow yield on the price is 4.02 %: that much free cash flow DAVIDsTEA Inc. produces per unit of market value. When it exceeds the discount rate of our models (10.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of DAVIDsTEA Inc. (DTEAF)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For DAVIDsTEA Inc. it is $1.11 per share (as of Sep 13, 2026), against a price of $0.7100. It is the blended result of 22 valuation models (cash flow, earnings, asset, dividend).
Is DAVIDsTEA Inc. stock overvalued or undervalued in 2026?
As of Sep 13, 2026, DTEAF trades below its calculated fair value: price $0.7100, fair value $1.11, a gap of about +56% (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 DTEAF?
No. The price is what the market pays today ($0.7100); the fair value is what the company's own numbers justify ($1.11). For DAVIDsTEA Inc. the two are $0.4000 per share apart. That gap is exactly why we show both numbers side by side.
How much is DAVIDsTEA Inc. worth?
The market values DAVIDsTEA Inc. at about $20.4M (market capitalisation, as of Sep 13, 2026). Per share that is $0.7100; our models calculate a fair value of $1.11 per share.
What do the bullish and bearish scenarios say about DTEAF?
Our models span a range for DAVIDsTEA Inc.: cautious scenario $0.8600, base $1.11, optimistic $1.42 per share (as of Sep 13, 2026, price $0.7100). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of DTEAF?
DAVIDsTEA Inc. trades at a price-to-earnings ratio of 8.9 (as of Sep 13, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $1.11 is built from several models across several years. Other multiples: P/B 0.8, P/S 0.3, EV/EBITDA 1.2.
How solid is the balance sheet of DAVIDsTEA Inc. (DTEAF)?
Balance-sheet figures for DAVIDsTEA Inc. (as of Sep 13, 2026): return on equity 14.6%. They feed the Quality Score of 60/100, which measures business quality independently of the share price.
How far is DTEAF from its 52-week high?
DAVIDsTEA Inc. trades at $0.7100, about 23% below its 52-week high of $0.9200 and 64% above the low of $0.4330 (as of Sep 13, 2026). Distance from the high says nothing about value: that is what the fair value of $1.11 is for.
Which stocks are comparable to DAVIDsTEA Inc.?
From the same area (Consumer Defensive) we also value Nestlé S.A, Danone S.A, Nestlé India Limited, The Kraft Heinz Company, 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 DAVIDsTEA Inc. stock attractive at the current price?
The data as of Sep 13, 2026: price $0.7100, calculated fair value $1.11 (+56%), Quality Score 60/100, from 22 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 DTEAF calculated?
We run DAVIDsTEA Inc. through 22 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 $1.11, 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 15.8 % above its aggregate fair value. DAVIDsTEA Inc. currently trades 56 % 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 should I pay attention to with DAVIDsTEA Inc. right now?
The price is below even our cautious bear case ($0.8600). 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 (60/100) at a price below fair value, the discount is the argument here, not the business quality.
Key figures of DAVIDsTEA Inc.
How large is the market capitalisation of DAVIDsTEA Inc. (DTEAF)?
The market capitalisation of DAVIDsTEA Inc. is $20.4M. 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 DAVIDsTEA Inc. (DTEAF)?
The price-to-sales ratio of DAVIDsTEA Inc. is 0.42 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of DAVIDsTEA Inc. (DTEAF)?
Earnings per share at DAVIDsTEA Inc. are $0.0800 (price ÷ EPS = P/E 8.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of DAVIDsTEA Inc. (DTEAF)?
The net margin of DAVIDsTEA Inc. is 4.8% (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 DAVIDsTEA Inc. (DTEAF)?
The return on equity (ROE) of DAVIDsTEA Inc. is 14.6% (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 DAVIDsTEA Inc. (DTEAF)?
On an EBIT basis the return on assets of DAVIDsTEA Inc. is −7.2% (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 DAVIDsTEA Inc. (DTEAF)?
The operating margin of DAVIDsTEA Inc. is 1.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at DAVIDsTEA Inc. (DTEAF)?
Revenue at DAVIDsTEA Inc. is growing −5.2% versus a year earlier (3y avg −1.3%). 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 DAVIDsTEA Inc. (DTEAF)?
Earnings per share at DAVIDsTEA Inc. are growing +75.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does DAVIDsTEA Inc. (DTEAF) hold?
DAVIDsTEA Inc. holds more cash than debt, $5.7M net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Thin data
Sep 13, 2026