BJ's Wholesale Club Holdings, Inc. (BJ) Company Bio
BJ's Wholesale Club Inc. operates warehouse clubs and gas stations in the eastern United States. The company’s warehouse clubs provide electronics, computers, office supplies, home and seasonal products, organic foods and meat, sports equipment, toys, baby products, health and beauty supplies, and jewelry. It also sells products online. The company was founded in 1996 and is based in Westborough, Massachusetts.
BJ 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 BJ's Wholesale Club Holdings Inc. To summarize, we found that BJ's Wholesale Club Holdings Inc ranked in the 99th percentile in terms of potential gain offered. Our DCF model suggests the stock is undervalued by 27185.5%; returns of such proportions should be viewed with some skepticism, though. In terms of the factors that were most noteworthy in this DCF analysis for BJ, they are:
The company's compound free cash flow growth rate over the past 1.95 years comes in at 1.92%; that's greater than 95.67% of US stocks we're applying DCF forecasting to.
The company has produced more trailing twelve month cash flow than 81.05% of its sector Consumer Cyclical.
BJ's Wholesale Club Holdings Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 7.66% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HUD, NDLS, NWHM, NVFY, and MSC can be thought of as valuation peers to BJ, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.