Is TCS undervalued stock

**The Container Store Group, Inc. (TCS) appears to be undervalued based on the estimated fair value and the current share price**. Here's the analysis to support this conclusion:

1. **Discounted Cash Flow (DCF) Analysis**:
- The DCF model used in the analysis projects a fair value of US$3.24 per share, which is significantly higher than the current share price of US$1.63.
- This suggests that TCS is trading at a discount, indicating potential undervaluation.
2. **Analyst Ratings and Price Targets**:
- The consensus rating for TCS is "Neutral" with an average price target of US$1.
- This price target is below the estimated fair value, further suggesting that the stock may be undervalued.
3. **Stock Performance and Valuation Metrics**:
- TCS has a P/E ratio of -0.27, which is negative and suggests that the company is not profitable as per the traditional P/E ratio calculation.
- However, the P/S ratio is 0.03, which is low compared to industry peers and may indicate a potential undervaluation based on revenue multiples.
4. **Recent Company Developments**:
- TCS has taken steps to lower expenses and enact a stock repurchase program, which could positively impact the stock's valuation.
- The company's 3D testing, lower costs, and stock repurchase program also suggest efforts to improve profitability and potentially increase shareholder value.
5. **Conclusion**: TCS appears to be an undervalued stock based on the estimated fair value and the current share price. The negative P/E ratio and the low P/S ratio suggest that the stock may be trading below its intrinsic value. The positive developments and the potential for cost savings further support the notion that TCS could be undervalued.