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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Big Lots Inc. To summarize, we found that Big Lots Inc ranked in the 93th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 3437% on a DCF basis. The most interesting components of our discounted cash flow analysis for Big Lots Inc ended up being:
The company's balance sheet shows it gets 53% of its capital from equity, and 47% of its capital from debt. Its equity weight surpasses that of just 19.43% of free cash flow generating stocks in the Consumer Defensive sector.
Big Lots Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 1.55% 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 merely 1.55% 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 TANH, NATR, LOPE, CYAN, and DTEA.
COLUMBUS, Ohio, Sept. 9, 2020 /PRNewswire/ -- Big Lots, Inc. (NYSE: BIG) today announced it will be participating in the Goldman Sachs 27th Annual Global Retailing Conference, which will be a virtual event this year. Bruce Thorn, President & CEO of Big Lots, Jonathan Ramsden, Executive…