Kits Eyecare Ltd (KITS) fair value: what the stock is really worth
As of Sep 28, 2026: fair value of Kits Eyecare Ltd C$4.18, price C$16.02, upside -73.9%, quality 68 out of 100. Calculated from audited financials with 26 valuation models and 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 27, 2026.
How to read this chart
60‑month range C$2.02 – C$21.93 · fair‑value band C$3.05 – C$4.86 · the C$16.02 price screens above the C$4.18 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 27, 2026.
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Kits Eyecare Ltd. operates a digital eyecare platform in the United States and Canada. It offers progressive, polarized, and contact lenses, eyeglasses, and frames under the KITS brand, as well as distributes eyewear products of various brands.
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Kits Eyecare Ltd. operates a digital eyecare platform in the United States and Canada. It offers progressive, polarized, and contact lenses, eyeglasses, and frames under the KITS brand, as well as distributes eyewear products of various brands. The company operates a network of optical e-commerce websites, including KITS.com, KITS.ca, OptiContacts.com, and ContactsExpress.ca. Kits Eyecare Ltd. was founded in 2002 and is headquartered in Vancouver, Canada.
Stock analysis
Kits Eyecare Ltd (KITS) currently trades at C$16.02, while our model-based Fair Value estimate is C$4.18, implying the stock looks roughly 283.3% overvalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of C$6.71 per share, and 0 of the 24 models we run sit above the C$16.02 price.
Bear case: the Asset-Based group reads lowest at C$1.23, and 24 of the 24 models stay below the price. Evidence for this calculation is high.
Scenario range: C$3.05 (bear) to C$4.86 (bull), the price of C$16.02 sits above 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 68/100 (solid quality), in the Consumer Cyclical sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Kits Eyecare Ltd reported revenue of C$202M in FY2025 versus C$82.4M in FY2021, a compound +25.2%/yr. Reported net income was C$3.1M in FY2025.
Key figures
Market cap C$544M (≈ $383M) · P/E ratio 160.2 · P/S ratio 2.46 · EPS (TTM) C$0.1000 · Net margin 1.5% · Return on equity 5.3% · Return on assets (EBIT) −2.7% · Operating margin 5.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 47 out of 100 (low confidence).
What moves the price
The share trades about 27% below its 52-week high and 48% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at 5% fair-value upside, at −74%, KITS screens richer than that median.
Fair Value models
Bear C$3.05Fair Value C$4.18Bull C$4.86
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 2025 figures (about 9 months old). Earnings retained since then (C$0.0745 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. 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.85/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+27.1%
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.
+30.2%
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.
+21.9%
Start year 2020 (pandemic)
Revenue growth 8 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.
+21.4%
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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.
+62.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+62.1%
Dividend (yield on the price)0.0%
Profit margin 2019 to 2025 ⓘ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.6% → 4%
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
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).
+25.0%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+16.5%
Yearly sales growth analysts expect, extended to five years.
After inflation (Canada: IMF forecast 2.1% a year to 2030, 2.6% from 2016 to 2025) that is about +22.4% a year for the price and +14.1% for the forecasts.
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.Specialty Retail · 220 stocks
Beats the industry median on 4/12 measures
Overall it trails its industry peers.
Valuation
Quality Score68 · Top 25%
Fair Value upside−73.9% · Bottom 25%
Profitability
Return on equity (TTM)5.3% · Below median
Return on assets5.3% · Above median
Net margin (TTM)1.6% · Below median
Operating margin (TTM)5.6% · Above median
Growth and dividend
Revenue growth23.3% · Top 25%
Valuation Multiplesvs Specialty Retail median · lower = cheaper
P/E (TTM)160.2× · Priciest 25%
P/B8.73× · Priciest 25%
P/S (TTM)2.55× · Priciest 25%
P/FCF48.0× · Priciest 25%
EV/EBITDA50.7× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 47
FUTURE (revenue growth)100· sector 23
PAST (return on equity)21· sector 27
HEALTH (low debt)100· sector 94
DIVIDEND (yield)0· sector 64
VALUE 0: the price sits above our fair-value range.
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.
Is Kits Eyecare Ltd (KITS) overvalued or undervalued?
As of Sep 27, 2026, our model estimates a fair value of C$4.18 versus a price of C$16.02, about −74% upside (overvalued).
What is the fair value of KITS?
Our model-based fair value for Kits Eyecare Ltd is C$4.18 (as of Sep 27, 2026), built from audited fundamentals. The current price: C$16.02.
What is the quality score of KITS?
Kits Eyecare Ltd has a Quality Score of 68/100. 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 Kits Eyecare Ltd (KITS)?
Our model-based price target is the fair value of C$4.18 (as of Sep 27, 2026) from 24 valuation models. Cautious scenario C$3.05, optimistic scenario C$4.86. It is a calculation from audited fundamentals, not an analyst target.
What is the Kits Eyecare Ltd stock forecast for 2026?
Our models put fair value at C$4.18, about −74% upside versus a price of C$16.02 (overvalued). Cautious scenario C$3.05, optimistic scenario C$4.86. The calculation is refreshed regularly with new filings.
What is the revenue of Kits Eyecare Ltd (KITS)?
Kits Eyecare Ltd reported trailing-twelve-month revenue of about C$213M (latest available figure, as of Sep 27, 2026).
What growth is priced into Kits Eyecare Ltd (KITS)?
For today's price to be fair in a discounted-cash-flow model, Kits Eyecare Ltd would have to grow free cash flow by +25.0 % per year for five years (discount rate 9.6 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +21.9 % per year. As of Sep 27, 2026.
What discount rate (WACC) does the fair value of KITS use?
Our models discount Kits Eyecare Ltd at 9.6 %: a base by market capitalisation (small), damped by beta 0.20, country premium for Canada. 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 Kits Eyecare Ltd that is +25.0 % per year a year over ten years, using the same discount rate (9.6 %) and the same formula as our fair value.
How much growth has Kits Eyecare Ltd (KITS) delivered so far?
Over the past 5 years revenue at Kits Eyecare Ltd grew +21.9 % a year. The price currently implies +25.0 % 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 Kits Eyecare Ltd (KITS) growing?
The median revenue growth in the sector is +2.6 % a year. That is the yardstick for the growth priced into Kits Eyecare Ltd (+25.0 % 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 Kits Eyecare Ltd (KITS)?
The free-cash-flow yield on the price is 2.08 %: that much free cash flow Kits Eyecare Ltd produces per unit of market value. When it exceeds the discount rate of our models (9.6 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Kits Eyecare Ltd (KITS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Kits Eyecare Ltd it is C$4.18 per share (as of Sep 27, 2026), against a price of C$16.02. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Kits Eyecare Ltd stock overvalued or undervalued in 2026?
As of Sep 27, 2026, KITS trades above its calculated fair value: price C$16.02, fair value C$4.18, a gap of about −74% (overvalued). 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 KITS?
No. The price is what the market pays today (C$16.02); the fair value is what the company's own numbers justify (C$4.18). For Kits Eyecare Ltd the two are C$11.84 per share apart. That gap is exactly why we show both numbers side by side.
How much is Kits Eyecare Ltd worth?
The market values Kits Eyecare Ltd at about C$544M (market capitalisation, as of Sep 27, 2026). Per share that is C$16.02; our models calculate a fair value of C$4.18 per share.
What do the bullish and bearish scenarios say about KITS?
Our models span a range for Kits Eyecare Ltd: cautious scenario C$3.05, base C$4.18, optimistic C$4.86 per share (as of Sep 27, 2026, price C$16.02). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of KITS?
Kits Eyecare Ltd trades at a price-to-earnings ratio of 160.2 (as of Sep 27, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of C$4.18 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 128.9 (reported for FY2025: 175.7). Other multiples: P/B 8.7, P/S 2.5, EV/EBITDA 50.7.
How solid is the balance sheet of Kits Eyecare Ltd (KITS)?
Balance-sheet figures for Kits Eyecare Ltd (as of Sep 27, 2026): return on equity 5.3%. They feed the Quality Score of 68/100, which measures business quality independently of the share price.
How far is KITS from its 52-week high?
Kits Eyecare Ltd trades at C$16.02, about 27% below its 52-week high of C$21.93 and 48% above the low of C$10.84 (as of Sep 28, 2026). Distance from the high says nothing about value: that is what the fair value of C$4.18 is for.
Which stocks are comparable to Kits Eyecare Ltd?
From the same area (Consumer Cyclical) we also value Alimentation Couche-Tard Inc, Williams-Sonoma, Inc, Ulta Beauty, Inc, Casey's General 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 Kits Eyecare Ltd stock attractive at the current price?
The data as of Sep 27, 2026: price C$16.02, calculated fair value C$4.18 (−74%), Quality Score 68/100, from 24 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 KITS calculated?
We run Kits Eyecare Ltd through 24 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 C$4.18, 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 15.9 % above its aggregate fair value. Kits Eyecare Ltd itself currently trades above fair value. 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 Kits Eyecare Ltd (KITS)?
The closing price on Sep 28, 2026 was C$16.02. Our model-based fair value is C$4.18, about −74% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Kits Eyecare Ltd right now?
The price sits above even our optimistic bull case (C$4.86). The favourable scenario is already priced in. Solid but not exceptional quality (68/100) and above fair value, neither a clear bargain nor a standout compounder.
Key figures of Kits Eyecare Ltd
How large is the market capitalisation of Kits Eyecare Ltd (KITS)?
The market capitalisation of Kits Eyecare Ltd is C$544M (≈ $383M). 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 Kits Eyecare Ltd (KITS)?
The price-to-sales ratio of Kits Eyecare Ltd is 2.46 (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 Kits Eyecare Ltd (KITS)?
Earnings per share at Kits Eyecare Ltd are C$0.1000 (price ÷ EPS = P/E 160.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Kits Eyecare Ltd (KITS)?
The net margin of Kits Eyecare Ltd is 1.5% (fiscal year 2025). 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 Kits Eyecare Ltd (KITS)?
The return on equity (ROE) of Kits Eyecare Ltd is 5.3% (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 Kits Eyecare Ltd (KITS)?
On an EBIT basis the return on assets of Kits Eyecare Ltd is −2.7% (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 Kits Eyecare Ltd (KITS)?
The operating margin of Kits Eyecare Ltd is 5.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Kits Eyecare Ltd (KITS)?
Revenue at Kits Eyecare Ltd is growing +23.3% versus a year earlier (3y avg +30.2%). 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 Kits Eyecare Ltd (KITS)?
Earnings per share at Kits Eyecare Ltd are growing +17.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Kits Eyecare Ltd (KITS) hold?
Kits Eyecare Ltd holds more cash than debt, C$14.0M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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