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. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 3024.17%. The most interesting components of our discounted cash flow analysis for Biglari Holdings Inc ended up being:
In the past 4.76 years, Biglari Holdings Inc has a compound free cash flow growth rate of 0.61%; that's higher than 89.75% of free cash flow generating stocks in the Consumer Cyclical sector.
33% of the company's capital comes from equity, which is greater than merely 16.27% 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 -6.1. This coverage rate is greater than that of just 10.16% 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
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BH, try CONN, EYE, SUP, MCS, and AIN.
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.
Steak n' Shake is permanently closing 51 restaurants, according to parent company Biglari Holdings' most recent quarterly report. The burger chain has been struggling for the last several years, "temporarily" closing over a hundred locations and hemorrhaging millions of dollars as sales plummet. Steak n' Shake's turnaround plan relies on selling all corporate-owned restaurants to franchisees, eliminating the brand's dine-in aspect, and inventing a new milkshake machine. Visit Business Insider's homepage for more stories . Steak n' Shake is closing 51 restaurants permanently, according to a recent quarterly report from its parent company, Biglari Holdings. The hamburger chain's net sales for the first quarter of 2020 were down $60.9 million compared to the first quarter of 2019 — a 36.8%...