Burlington Stores operates a national chain of off-price retail stores offering ladies', men's and children's apparel and accessories, home goods, baby products and coats, principally under the name Burlington Stores. The company was founded in 1972 and is based in Burlington, New Jersey.
BURL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Burlington Stores Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Burlington Stores Inc ranked in the 68th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 242.67% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for BURL, they are:
Burlington Stores Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 23.06% of tickers in our DCF set.
BURL'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 23.06% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), Burlington Stores Inc has a reliance on debt greater than just 22.98% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CTRN, SBH, MYE, SIX, and MGM can be thought of as valuation peers to BURL, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.