Carter's (FRA:HCH) Cyclically Adjusted PB Ratio: 1.19 (As of Sep. 22, 2026) — 76% Below Median

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FRA:HCH Carter's Inc FRA:HCH
74 GF Score
Price €26.00
GF Value €45.35
Valuation Significantly Undervalued
! 3 Warning Signs
View Full Analysis

What is Carter's Cyclically Adjusted PB Ratio?

Carter's FRA:HCH -0.79% 74 Cyclically Adjusted PB Ratio is 1.19 as of Sep. 22, 2026, which is 76% below its 10-year median of 4.90. GuruFocus rates FRA:HCH with a GF Score™ of 74/100 and a GF Value™ of €45.35 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 758 Retail - Cyclical companies, Carter's ranks worse than 51.45% on this metric.

As of today (2026-09-22), Carter's's current share price is €26.00. Carter's's Cyclically Adjusted Book per Share for the quarter that ended in Jun. 2026 was €21.85. Carter's's Cyclically Adjusted PB Ratio for today is 1.19.

The historical rank and industry rank for Carter's's Cyclically Adjusted PB Ratio or its related term are showing as below:

FRA:HCH' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 1.01   Med: 4.9   Max: 8.59
Current: 1.24

During the past years, Carter's's highest Cyclically Adjusted PB Ratio was 8.59. The lowest was 1.01. And the median was 4.90.

FRA:HCH's Cyclically Adjusted PB Ratio is ranked worse than
51.45% of 758 companies
in the Retail - Cyclical industry
Industry Median: 1.19 vs FRA:HCH: 1.24

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Carter's's adjusted book value per share data for the three months ended in Jun. 2026 was €24.476. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is €21.85 for the trailing ten years ended in Jun. 2026.

Shiller PE for Stocks: The True Measure of Stock Valuation


Carter's  (FRA:HCH) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Carter's Cyclically Adjusted PB Ratio Related Terms


Carter's Cyclically Adjusted PB Ratio Historical Data

* Premium members only.

The historical data trend for Carter's's Cyclically Adjusted PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Carter's Cyclically Adjusted PB Ratio Chart

Carter's Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.08 3.72 3.37 2.45 1.23

Carter's Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.22 1.11 1.28 1.42 1.67

FRA:HCH vs REF, CTRN, SFIX: Cyclically Adjusted PB Ratio Comparison

For the Apparel Retail subindustry, Carter's's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Carter's Cyclically Adjusted PB Ratio vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Carter's's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Carter's's Cyclically Adjusted PB Ratio falls into.


FRA:HCH
74GF Score
Carter's Inc FRA:HCH
Cyclically Adjusted PB Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Carter's Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Carter's's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=26.00/21.847
=1.19

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Carter's's Cyclically Adjusted Book per Share for the quarter that ended in Jun. 2026 is calculated as:

For example, Carter's's adjusted Book Value per Share data for the three months ended in Jun. 2026 was:

Adj_Book=Book Value per Share/CPI of Jun. 2026 (Change)*Current CPI (Jun. 2026)
=24.476/333.9520*333.9520
=24.476

Current CPI (Jun. 2026) = 333.9520.

Carter's Quarterly Data

Book Value per Share CPI Adj_Book
201609 13.917 241.428 19.251
201612 15.265 241.432 21.115
201703 14.876 243.801 20.377
201706 13.706 244.955 18.686
201709 13.771 246.819 18.632
201712 15.135 246.524 20.503
201803 14.753 249.554 19.742
201806 14.905 251.989 19.753
201809 15.169 252.439 20.067
201812 16.668 251.233 22.156
201903 16.670 254.202 21.900
201906 16.203 256.143 21.125
201909 16.833 256.759 21.894
201912 17.835 256.974 23.178
202003 14.963 258.115 19.359
202006 14.962 257.797 19.382
202009 16.057 260.280 20.602
202012 17.511 260.474 22.451
202103 19.934 264.877 25.132
202106 21.028 271.696 25.846
202109 21.194 274.310 25.802
202112 20.306 278.802 24.323
202203 20.284 287.504 23.561
202206 19.971 296.311 22.508
202209 20.922 296.808 23.540
202212 19.798 296.797 22.276
202303 19.429 301.836 21.496
202306 19.017 305.109 20.815
202309 20.063 307.789 21.768
202312 20.934 306.746 22.791
202403 21.285 312.332 22.758
202406 20.877 314.175 22.191
202409 20.620 315.301 21.840
202412 22.897 315.605 24.228
202503 21.645 319.799 22.603
202506 19.948 322.561 20.652
202509 20.150 324.800 20.718
202512 21.623 324.054 22.283
202603 21.867 330.213 22.115
202606 24.476 333.952 24.476

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

What does a Cyclically Adjusted PB Ratio of 1.19 mean?
Carter's (FRA:HCH) has a Cyclically Adjusted PB Ratio of 1.19 as of Sep. 22, 2026. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Carter's and its competitors. This is 76% below median its historical median of 4.90. Over the past decade, Carter's' Cyclically Adjusted PB Ratio has ranged from 1.01 to 8.59. According to the industry distribution chart, Carter's ranks #390 out of 758 companies in the Retail - Cyclical industry, placing it in the top 51.5%.
Is Carter's' Cyclically Adjusted PB Ratio too high?
Carter's' current Cyclically Adjusted PB Ratio of 1.19 is 76% below median its 10-year median of 4.90. Over the past 10 years, this metric has ranged from a low of 1.01 to a high of 8.59. The Retail - Cyclical industry median Cyclically Adjusted PB Ratio is 1.19. Carter's' value of 1.19 is 0% at this industry median. Based on the distribution chart, Carter's ranks #390 out of 758 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Carter's has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Carter's' Cyclically Adjusted PB Ratio compare to REF and CTRN?
According to the Retail - Cyclical industry distribution chart, Carter's ranks #390 out of 758 companies for Cyclically Adjusted PB Ratio. This places Carter's in the lower half of its industry. The industry median Cyclically Adjusted PB Ratio is 1.19. Carter's' value of 1.19 is 0% at this benchmark. Historically, Carter's' own Cyclically Adjusted PB Ratio has ranged from 1.01 to 8.59 over the past decade. While the company's 10-year median is 4.90 vs. the industry median of 1.19, Carter's has consistently been at the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted PB Ratio for a Retail - Cyclical company?
The median Cyclically Adjusted PB Ratio among Retail - Cyclical companies is 1.19, based on 758 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Carter's's current Cyclically Adjusted PB Ratio of 1.19 is 0% at the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted PB Ratio mean?
A high Cyclically Adjusted PB Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Carter's and its competitors. For the Retail - Cyclical industry, the median Cyclically Adjusted PB Ratio is 1.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Carter's's current Cyclically Adjusted PB Ratio is 1.19, which is 76% below median its own 10-year median of 4.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Carter's stock overvalued right now?
Based on GuruFocus' analysis, Carter's (FRA:HCH) is currently considered Significantly Undervalued. The stock's GF Value™ is €45.35, compared to a current price of €26.00 — trading 42.7% below its estimated fair value. The current Cyclically Adjusted PB Ratio is 1.19, which is 76% below median its 10-year median of 4.90 and 0% at the Retail - Cyclical industry median of 1.19. Carter's' overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PB Ratio calculated?
Cyclically Adjusted PB Ratio is calculated from a company's financial statements. For Carter's (FRA:HCH), the current Cyclically Adjusted PB Ratio is 1.19 as of Sep. 22, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Carter's (FRA:HCH) Overvalued in 2026?

Based on GuruFocus' analysis, Carter's stock appears to be undervalued. The current stock price of €26.00 is trading 42.7% below its estimated GF Value™ of €45.35. GuruFocus considers Carter's to be Significantly Undervalued.

Key valuation signals for FRA:HCH:

  • Cyclically Adjusted PB Ratio: 1.19 (76% below median its 10-year median of 4.90)
  • GF Value™: €45.35 vs. price of €26.00 (42.7% below fair value)
  • GF Score™: 74/100 with 3 warning signs
  • Industry Position: 0% at the Retail - Cyclical median (#390 of 758)

No single metric tells the full story. See the FRA:HCH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Carter's Business Description

Address 3438 Peachtree Road North East, Phipps Tower, Suite 1800, Atlanta, GA, USA, 30326
Carter's Inc. is a leading marketer of apparel for babies and young children, primarily under its Carter's and OshKosh B'gosh brands, along with Skip Hop and Little Planet. The company designs, sources, and sells clothing, accessories, and related products through three reporting segments: U.S. Retail, U.S. Wholesale, and International. Its products reach consumers via company-operated retail stores, e-commerce websites, and wholesale arrangements with department stores, national retailers, and discount chains. Carter's also licenses its brands for products such as footwear, accessories, and baby gear. While the United States accounts for the majority of sales, the company operates in Canada, Mexico, and other international markets, and sources most merchandise from contract manufacturers in Asia. Revenue is generated through direct-to-consumer store and online sales, wholesale shipments, and licensing royalties, supported by distribution centers in the U.S., Canada, and Asia.
74GF Score

Get the complete analysis for FRA:HCH

Cyclically Adjusted PB Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€26.00
Price
€45.35
GF Value