Should you sell Capri Holdings Limited or reduce the position?
Calculate what you would remove, what you would retain, and which assumptions support continuing to own it.
Price as of Nov 3, 2026, 3:45 AM UTC (polygon last daily bar) · Evidence through Nov 3, 2026
What has changed in the case for owning it?
Market Ontology's model values Capri Holdings Limited at $11.61 per share against $18.68 (-37.9%). 2 dated developments in the last 45 days reach the position.
| Development | Evidence | Assumption affected | Consequence for the case |
|---|---|---|---|
| Nov 3, 2026 · Capri Holdings shares rise 7% as Q2 adjusted net income reaches $45M | 1 sources | margin expansion via structural cost reductions | Supports the case for owning |
| Nov 2, 2026 · Capri operating income surges 55% as Michael Kors cuts promotions by 50% | 1 sources | curtailed discounting driving operating income expansion | Supports the case for owning |
What changes if you sell?
| Keep current position | Sell selected quantity | Exit position | |
|---|---|---|---|
| Shares remaining | 100 | 50 | 0 |
| Estimated proceeds after included transaction costs | — | $934 | $1,867 |
| Downside case ($8.38) outcome | −$1,030 | −$515 | $0 |
| Upside case ($15.68) outcome | −$300 | −$150 | $0 |
| Remaining exposure | $1,868 | $934 | $0 |
Included costs: an assumed 5 bps for commission and spread. Tax treatment: not calculated; cost basis is not used in this comparison.
Undecided: sale proceeds and remaining exposure are calculated; replacement performance is left unresolved.
What would justify keeping the remaining position?
- Revenue growth (yr 1) holds near -14.81%: Trailing 4-year revenue CAGR of -14.8%, faded toward terminal growth over 5 years.
- Operating margin (steady-state) holds near 3.36%: Anchored to mean operating margin of 3.4% across the last 4 reported periods.
- Discount rate (WACC) holds near 10.99%: CAPM baseline: 4.94% risk-free + β1.10 × 5.5% ERP = 10.99%.
What would justify investigating it again after an exit?
- Implied revenue growth (next yr → terminal) moves relative to 3.46%: Growth rate that reconciles the current share price to a 5y DCF holding margin, WACC and terminal g fixed.
- Implied steady-state FCF margin moves relative to 7.75%: FCF margin the market needs to justify the current price at modeled growth and WACC.
- The price falls below the downside value of $8.38.
Preserve the reasoning behind the sale.
Save the reduction you're considering, the evidence behind it, and your conditions for reviewing the remaining position. If you exit, keep the research and specify what would justify revisiting CPRI.
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