Is It Too Late To Consider FIGS (FIGS) After Its 86% One Year Surge?

Simply Wall St

Tue, February 17, 2026 at 9:23 AM GMT+9 6 min read

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FIGS

+0.49%

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If you are wondering whether FIGS at US$10.25 is still good value after a strong run, this article will walk through what the current price might imply about the stock.

The share price has pulled back recently, with a 4.6% decline over the last 7 days and an 11.6% decline over the last 30 days. The 1 year return sits at 86.4% and the 3 year return at 9.5%.

Recent coverage around FIGS has focused on its position in healthcare apparel and how investors are reacting to shifting sentiment around growth stocks. This helps explain some of the recent swings in the share price. This mix of shorter term volatility and longer term return numbers is why many investors are now paying closer attention to what they are actually paying for each dollar of expected performance.

Right now FIGS has a valuation score of 0 out of 6. We will look at what different valuation approaches suggest about the current price, and then finish by highlighting a way to build an even clearer view of value beyond the standard checks.

FIGS scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: FIGS Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model projects the cash a company could generate in the future and then discounts those amounts back to what they might be worth in today’s dollars.

For FIGS, the latest twelve month free cash flow is reported at $16.87 million. Using a 2 Stage Free Cash Flow to Equity model, analysts have a direct forecast of free cash flow of $49.6 million in 2026, with further annual projections out to 2035 extrapolated from that base. Simply Wall St has converted these yearly estimates into present values, using its cash flow projections approach.

When all those discounted cash flows are added up, the model suggests an intrinsic value of about $4.58 per share. Compared with the recent share price of US$10.25, the DCF output implies the stock is about 123.7% above this estimate. On this model, FIGS screens as overvalued at current levels.

Result: OVERVALUED

Our Discounted Cash Flow (DCF) analysis suggests FIGS may be overvalued by 123.7%. Discover 54 high quality undervalued stocks or create your own screener to find better value opportunities.

FIGS Discounted Cash Flow as at Feb 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for FIGS.

Approach 2: FIGS Price vs Earnings

For a profitable company, the P/E ratio is a straightforward way to think about what you are paying for each dollar of current earnings, which is why it is often the go to multiple for stocks like FIGS.

Story Continues  

What counts as a “fair” P/E usually depends on how fast earnings are expected to grow and how risky those earnings are. Higher growth and lower perceived risk can justify a higher P/E, while slower growth or higher risk often lines up with a lower P/E.

FIGS currently trades on a P/E of 95.65x. That sits well above both the Luxury industry average of 21.24x and the peer average of 14.88x. Simply Wall St’s Fair Ratio for FIGS is 21.22x, which is its proprietary view of what a more appropriate P/E could be, given factors like earnings growth, profit margins, risks, industry and market cap. This Fair Ratio can be more useful than a simple peer or industry comparison because it adjusts for those company specific features rather than assuming all companies should trade on the same multiple.

Comparing the Fair Ratio of 21.22x with the current P/E of 95.65x, FIGS screens as overvalued on this approach.

Result: OVERVALUED

NYSE:FIGS P/E Ratio as at Feb 2026

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Upgrade Your Decision Making: Choose your FIGS Narrative

Earlier we mentioned that there is an even better way to understand valuation. On Simply Wall St you can use Narratives on the Community page to attach your own story about FIGS to the numbers, by linking your view of its future revenue, earnings and margins to a forecast. That can then be turned into a fair value and compared with the current price to help guide buy or sell decisions. Each Narrative updates automatically as new news or earnings arrive and allows very different perspectives to coexist. For example, one investor might anchor on a lower fair value around US$6.20 and another on a higher fair value around US$15.00, with both built from their own assumptions about how FIGS might perform over time.

For FIGS however, we will make it really easy for you with previews of two leading FIGS Narratives:

🐂 FIGS Bull Case

Fair value in this bullish narrative: US$15.00 per share

Implied pricing gap vs last close at US$10.25, about 31.7% below this narrative fair value based on the author’s assumptions

Revenue growth assumption: 9.24% a year

Backers of this view see FIGS building on international expansion, omnichannel hubs and strong healthcare brand affinity to grow its customer base and repeat revenues.

They assume modestly higher revenue growth, improving profit margins and a future P/E of 60.0x. Together, these support a higher fair value than current analyst price targets.

Key watchpoints include heavy exposure to healthcare professionals, tariff and margin pressure, competition in healthcare workwear, slower product refresh and questions around sustainability positioning.

🐻 FIGS Bear Case

Fair value in this more cautious narrative: US$7.21 per share

Implied pricing gap vs last close at US$10.25, about 42.2% above this narrative fair value based on the author’s assumptions

Revenue growth assumption: 9.0% a year

This author still sees FIGS growing, helped by product range expansion, new markets, data use and the TEAMS and retail initiatives, but views the current share price as rich relative to their fair value.

The business is described as having a focused healthcare niche, premium branding and margin potential from direct to consumer and e commerce. However, execution expectations around roughly 8% growth and improving margins leave less room for setbacks.

Risks flagged include execution pressure after past share price weakness, foreign exchange exposure, sensitivity to economic cycles, and a concern that marketing and image carry too much of the value versus product function.

Together these Narratives frame a clear valuation range, so you can decide where your own view of FIGS sits between them or outside that band entirely.

Do you think there’s more to the story for FIGS? Head over to our Community to see what others are saying!

NYSE:FIGS 1-Year Stock Price Chart

_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include FIGS.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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