Biglari Holdings owns, operates, and franchises restaurants under restaurant concepts, including Steak n Shake. The company was founded in 1934 and is based in San Antonio, Texas.
BH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Biglari Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Biglari Holdings Inc ranked in the 93th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 3537.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Biglari Holdings Inc ended up being:
In the past 5.01 years, Biglari Holdings Inc has a compound free cash flow growth rate of 0.66%; that's higher than 89.07% of free cash flow generating stocks in the Consumer Cyclical sector.
41% of the company's capital comes from equity, which is greater than just 20.88% of stocks in our cash flow based forecasting set.
Biglari Holdings Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -5.06. This coverage rate is greater than that of just 11.88% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SPWH, RUSHA, GIII, BGFV, and LAD can be thought of as valuation peers to BH, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]
Biglari Holdings' (NYSE: BH.A; BH) 2020 Annual Shareholders Meeting will be held on Thursday, June 25, at 1:00 p.m. Central Time at the Majestic Theatre, 224 East Houston Street, San Antonio, Texas. Shareholders will be able to attend the meeting in person.