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:
We started the process of determining a valid price forecast for Big Lots Inc with a discounted cash flow analysis -- the results of which can be found in the table below. 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 3193% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Big Lots Inc, consider:
The company's balance sheet shows it gets 54% of its capital from equity, and 46% of its capital from debt. Notably, its equity weight is greater than only 20.33% 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 7%; for context, that number is higher than only 1.5% 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 1.5% 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 NATR, LOPE, CYAN, TANH, 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…