Designer Brands (formerly DSW Inc.) is a branded footwear and accessories retailer that offers a wide selection of brand name and designer dress, casual and athletic footwear and accessories for women, men and kids. The company was founded in 1917 and is based in Columbus, Ohio.
DBI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for DBI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Designer Brands Inc ranked in the 69th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 153%. As for the metrics that stood out in our discounted cash flow analysis of Designer Brands Inc, consider:
The company's balance sheet shows it gets 31% of its capital from equity, and 69% of its capital from debt. Notably, its equity weight is greater than merely 20.3% of US equities in the Consumer Cyclical sector yielding a positive free cash flow.
The company's compound free cash flow growth rate over the past 5.66 years comes in at -0.05%; that's greater than only 21.73% of US stocks we're applying DCF forecasting to.
Designer Brands Inc's weighted average cost of capital (WACC) is 5%; for context, that number is higher than only 0.52% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BWA, GLXZ, SMRT, IAA, and CPRI can be thought of as valuation peers to DBI, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Designer Brands Inc. (NYSE: DBI), one of North America's largest designers, producers and retailers of footwear and accessories, announced the Company will issue its first quarter 2020 earnings on June 18, 2020. Management will host a conference call to discuss the results at 8:30 am E.T. A press release detailing the Company's results will be issued prior to the call.
Shares of several brick-and-mortar retailers were trading higher on Wednesday morning as the broader market rallied for a second day on rising optimism about the post-pandemic economy. Designer Brands (NYSE: DBI) was up 5.2%. Gap (NYSE: GPS) was up 5.5%.
Shares of several apparel and home-goods chains rose on Tuesday afternoon, as continued store reopenings and recovering economic activity gave retail-focused investors reasons for optimism. Designer Brands (NYSE: DBI) was up 13.5%. Gap (NYSE: GPS) was up 8.8%.
What happened Shares of several retail-chain operators were rising on Monday, amid a broad-based market rally as investors grew more optimistic about the development of a COVID-19 vaccine. Here's where things stood for these four companies' stocks as of 12:15 p.