VINCE HOLDING CORP.

Where It Passes

Where It Falls Short

• Profitability0% pass✓ 7✗ 28▾

  No clean pass — all 16 investors flag at least one profitability criterion

  Positive EPS (10 years)6/16 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)6/16 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-38.2%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)3.1% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$5.2M

  ✓BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)P/E 27.9x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE13.0%

  ✗Lynch> 15%

  EBIT / Enterprise Value7.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=7.1%, ROC=32.1%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets2.83%

  ✓PiotroskiROA > 0

  ROA Change YoY-8.55% -> 2.83% (delta: +11.39%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=1.33%, ROA=2.83%

  ✗PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY49.5% -> 49.7%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue3.5%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity13.0%

  ✓Dreman> 12%

  Margin of SafetyP/E=27.9x, P/B=3.5x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity7.0% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-168.0% (IV=$5.10 vs Price=$13.67)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency6/15 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue4.3%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity13.0%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend10.8% (2023) -> 3.1% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 45.5% -> 49.7%, operating margin 10.8% -> 3.1%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+4.30%; #1906/6340 (top 30.1%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+72.20%; #321/3702 (top 8.7%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity+12.96%; #1384/5226 (top 26.5%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0848; #3279/5884 (top 55.7%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-5.4% over 4 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years4/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation0% pass✓ 1✗ 27▾

  No clean pass — all 13 investors flag at least one valuation criterion

  Price / 3-yr avg EPS40.2x

  ✗Graham<= 15x

  Price-to-Book Ratio3.5x

  ✗Graham<= 1.5x

  P/E x P/B140.90

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 27.9x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value7.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=7.1%, ROC=32.1%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS27.9x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)58.8x

  ✗Dreman< 8x

  Price / Book Value per Share3.5x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=27.9x, OE Yield=2.8%

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=27.9x, FCF Yield=-0.7%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=27.9x, P/B=3.5x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-168.0% (IV=$5.10 vs Price=$13.67)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low963% of trailing low ($1.42)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization+4.30%; #1906/6340 (top 30.1%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.3322; #3547/6449 (top 55.0%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS27.9x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share3.51x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-30.4%

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+1.7782; #1184/5247 (top 22.6%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+10.24%; #738/4519 (top 16.3%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+173.95%; #173/6202 (top 2.8%)

  ✓OshaughnessyTop 10% of eligible cross-section
• Growth0% pass✓ 2✗ 11▾

  No clean pass — all 8 investors flag at least one growth criterion

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 27.9x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: -4.3% vs Rev: 8.0%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR-5.7% CAGR over 11 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency6/15 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth0.2%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency3/5 years with positive EPS growth

  ✓AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 45.5% -> 49.7%, operating margin 10.8% -> 3.1%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR6.4%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-5.4% over 4 years

  ✗Neff7%-20% annualized
• Valuation models0% pass✗ 6▾

  VNCE overvalued: all 6 models price fair value below $13.67 (median $4.80)

  Graham fair value$6.56

  ✗Graham-108.4% margin vs $13.67

  Buffett fair value$4.76

  ✗Buffett-187.2% margin vs $13.67

  Greenblatt fair value$4.85

  ✗Greenblatt-181.9% margin vs $13.67

  Dreman fair value$5.10

  ✗Dreman-168.0% margin vs $13.67

  Pabrai fair value$1.19

  ✗Pabrai-1048.7% margin vs $13.67

  Akre fair value$2.82

  ✗Akre-384.8% margin vs $13.67
• Efficiency25% pass✓ 4✗ 7▾

  6 of 8 flag VNCE's efficiency — Graham, Buffett, Dreman +3 more

  Current Ratio1.49

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)0.1%

  ✗Buffett> 10%

  ROIC - WACC-9.9%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)32.1%

  ✓Greenblatt> 25%

  Current Ratio Change YoY1.31 -> 1.49

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY1.32x -> 1.33x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities1.49

  ✗Dreman> 1.5

  Return on Invested Capital14.9%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=27.4%; FY2024: ROIC=-22.3%; FY2025: ROIC=10.5%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC10.5% (RR=100% x ROIC=10.5%)

  ✓AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)1/5 years above 12% (latest 10.5%)

  ✗SleepROIC > 12% in a majority of years
• Verdicts27% pass✓ 4✗ 11▾

  Split decision: 11 FAIL · 2 NEUTRAL · 2 PASS · 1 BUY

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (1/9)✗LynchFAIL (3/7)✓GreenblattRank #616•PiotroskiNEUTRAL (F-Score 6)✗DremanFAIL (2/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✓AkrePASS (3/6)✗MarksFAIL (1/5)✓AckmanPASS (4/9)✗TempletonFAIL (2/8)✗SleepFAIL (2/6)✓AsnessBUY (Rank #63/2370 (Top 2.7%))✗NeffFAIL (2/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Cash Flow30% pass✓ 5✗ 7▾

  7 of 10 flag VNCE's cash flow — Piotroski, Dreman, Pabrai +4 more

  Free Cash Flow Proxy$5.2M

  ✓BuffettPositive and growing

  FCF Positive and Growing$18.1M

  ✓LynchPositive and growing

  Operating Cash Flow$3.0M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=1.33%, ROA=2.83%

  ✗PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)58.8x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=27.9x, FCF Yield=-0.7%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive5/15 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap10.3%

  ✓Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency7/15 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$18.1M

  ✓Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization+10.24%; #738/4519 (top 16.3%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Debt & Leverage50% pass✓ 9✗ 6▾

  6 of 12 pass — Buffett, Lynch, Piotroski +3 more object

  LT Debt vs Net Current AssetsLT Debt $12.2M vs NCA $34.9M

  ✓GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.21, IC: 4.4x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity0.21

  ✓Lynch< 0.33

  Cash - Long-term Debt$-11.2M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change8.60% -> 8.65%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.49

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity0.21

  ✓Dreman< 0.8✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x

  Debt Levels0.21

  ✓MungerDebt/Equity < 0.5✓AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=4.4x, D/EBITDA=0.8x

  ✓MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity0.21

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.2084; #1706/4210 (top 40.5%)

  ✗AsnessTop 30% of eligible cross-section