Alliance Data Systems Corporation (ADS) Company Bio
Alliance Data Systems provides marketing and loyalty solutions in the United States and internationally. The company operates through three segments: LoyaltyOne, Epsilon, and Private Label Services and Credit. The company was founded in 1996 and is based in Plano, Texas.
ADS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Alliance Data Systems Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Alliance Data Systems Corp ranked in the 86th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 720% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for ADS, they are:
As a business, ADS is generating more cash flow than 82.69% of positive cash flow stocks in the Financial Services.
31% of the company's capital comes from equity, which is greater than only 10.62% of stocks in our cash flow based forecasting set.
The business' balance sheet suggests that 69% of the company's capital is sourced from debt; this is greater than 89.34% of the free cash flow producing stocks we're observing.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PROS, ONDK, ECPG, MMAC, and BGCP can be thought of as valuation peers to ADS, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.