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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Biglari Holdings Inc. To summarize, we found that Biglari Holdings Inc ranked in the 90th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1616% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for BH, they are:
47% of the company's capital comes from equity, which is greater than only 17.8% 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 -3.89. This coverage rate is greater than that of merely 13.86% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 14. This value is greater than 86.73% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CWH, ABG, HOV, SKY, and LCUT 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.
OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of First Guard Insurance Company (First Guard) (Scottsdale, AZ). The outlook of these Credit Ratings (ratings) is stable. First Guard is a subsidiary of Biglari Holdings Inc. [NYSE: BH]. The ratings reflect First Guard’s balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, neutral business profi
Biglari Holdings Inc. (NYSE:BH) CEO Sardar Biglari purchased 1,888 shares of the firm’s stock in a transaction on Wednesday, December 16th. The shares were purchased at an average price of $237.14 per share, for a total transaction of $447,720.32. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can […]
In this article you are going to find out whether hedge funds think Biglari Holdings Inc (NYSE:BH) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks […]