CoreCivic owns, operates and manages prisons and other correctional facilities and provides residential, community re-entry and prisoner transportation services for governmental agencies. The company was founded in 1983 and is based in Nashville, Tennessee.
CXW Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for CoreCivic Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that CoreCivic Inc ranked in the 66th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for CoreCivic Inc ended up being:
The company's compound free cash flow growth rate over the past 5.45 years comes in at -0.04%; that's greater than only 20.22% of US stocks we're applying DCF forecasting to.
24% of the company's capital comes from equity, which is greater than merely 9.89% of stocks in our cash flow based forecasting set.
The weighted average cost of capital for the company is 7. This value is greater than only 20.37% stocks in the Real Estate sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Real Estate that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CXW, try PGRE, CLNC, IRET, CIGI, and JLL.
Co-produced with Beyond Saving In the world of REITs, the quality of the tenant often becomes a driving factor in the valuation of the stock. Properties that have very reliable tenants tend to be very highly valued. Properties with tenants that are distressed or otherwise perceived as being unreliable will...
CoreCivic ([[CXW]] +0.2%) gets a new contract under an intergovernmental agreement between the city of Cushing, OK, and the United States Marshals Service that will use the company's 1,692-bed Cimarron Correctional Facility in Cushing, which CXW had planned to idle in Q3.The new management contract starts on Sept. 15, 2020...
Detainees at a privately run US Immigration and Customs Enforcement (ICE) detention centre were reportedly thrown out of wheelchairs and slammed to the ground by guards when they asked for medical assistance. The immigrants, who were being detained at the Stewart Detention Centre in Georgia, run privately by CoreCivic, said that guards used excessive force when they asked for