Albertsons Companies, Inc., through its subsidiaries, operates as a food and drug retailer in the United States. Its food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services.
ACI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Albertsons Companies Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Albertsons Companies Inc ranked in the 97th percentile in terms of potential gain offered. As the table below shows, the model suggests the stock is dramatically undervalued -- investors should note, though, that such returns are always unlikely and not to be expected. In terms of the factors that were most noteworthy in this DCF analysis for ACI, they are:
34% of the company's capital comes from equity, which is greater than merely 12.39% of stocks in our cash flow based forecasting set.
Albertsons Companies Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 0.64% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Defensive), Albertsons Companies Inc has a reliance on debt greater than 94.15% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ACI, try HFFG, PRDO, NTCO, SIAF, and SENEA.
Albertsons Companies (ACI) is a company which went public (again) in June. Its private equity owners took the opportunity to bring the grocery retail chain public with supermarkets enjoying a boom from COVID-19 induced hoarding and stronger structural demand with restaurants, hotels, bars and offices (partially) closed. Following the IPO,...
The Value Investor on Seeking Alpha | September 21, 2020
Summary List Placement This isn't your nonna's meatball. Beyond Meat, the plant-based meat alternative company, announced on Monday that it is rolling out meatless meatballs at grocery stores across the US this October. Rather than the standard pork, beef, or veal that comprise meatballs, Beyond Meat's version uses peas, brown rice, and a blend of Italian spices to make a vegetarian-friendly alternative to your nonna's recipe. A pack of 12 Beyond Meatballs will retail at $6.99, and will be available at grocery stores across the US by early October. Locations include Whole Foods, Stop & Shop, Sprouts, Harris Teeter, and Albertsons. Plant-based meat alternatives have seen significant growth in the last few years. Sales for meat substitutes increased 454% in March, according to Nielsen . A...
DUBLIN, Sept. 11, 2020 /PRNewswire/ -- The "Online Grocery - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering. The 142-page report presents concise insights into how the pandemic has impacted production and the buy side for 2020 and 2021. A…