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 73th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 330.67%. As for the metrics that stood out in our discounted cash flow analysis of Big Lots Inc, consider:
In the past 5.25 years, Big Lots Inc has a compound free cash flow growth rate of -0.04%; that's higher than only 24.42% of free cash flow generating stocks in the Consumer Defensive sector.
23% of the company's capital comes from equity, which is greater than only 13.1% of stocks in our cash flow based forecasting set.
Big Lots Inc's weighted average cost of capital (WACC) is 4%; for context, that number is higher than only 0.48% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BIG, try FARM, FMX, ANDE, GNC, and ABEV.