Big Lots is a discount retailer with product assortments in the merchandise categories of Food, Consumables, Furniture, Seasonal, Soft Home, Hard Home, and Electronics & Accessories. The company was founded in 1967 and is based in Columbus, Ohio.
BIG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for BIG, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Big Lots Inc ranked in the 78th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 406.5%. As for the metrics that stood out in our discounted cash flow analysis of Big Lots Inc, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 49. Notably, its equity weight is greater than merely 20.77% of US equities in the Consumer Defensive sector yielding a positive free cash flow.
Big Lots Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 2.21% of tickers in our DCF set.
BIG's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 2.21% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Big Lots Inc? See FARM, SUMR, SANW, SPTN, and ALCO.