Abercrombie & Fitch is a global specialty retailer of high-quality, casual apparel for men, women and kids with an active, youthful lifestyle. The company was founded in 1892 and is based in New Albany, Ohio.
ANF Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ANF, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Abercrombie & Fitch Co ranked in the 72th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 166.83% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for ANF, they are:
49% of the company's capital comes from equity, which is greater than just 19.46% of stocks in our cash flow based forecasting set.
Abercrombie & Fitch Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.83. This coverage rate is greater than that of just 21.34% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Abercrombie & Fitch Co experienced a tax rate of about 134% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 96.49% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ANF, try WWE, MBUU, VIAC, MGA, and MUSA.