With a market capitalization of $9,155,403,560, Deckers Outdoor Corp has a greater market value than 81.97% of US stocks.
With a one year PEG ratio of 216.33, Deckers Outdoor Corp is expected to have a higher PEG ratio (a measure of how expensive a stock is relative to its expected earnings growth) than 84.8% of US stocks.
Of note is the ratio of Deckers Outdoor Corp's sales and general administrative expense to its total operating expenses; 87.91% of US stocks have a lower such ratio.
If you're looking for stocks that are quantitatively similar to Deckers Outdoor Corp, a group of peers worth examining would be AOS, WSO, AAP, JLL, and HSIC.
Deckers Outdoor Corporaton designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high performance activities. The Company markets its products under three brands: UGG, Teva, and Sanuk. The company was founded in 1973 and is based in Goleta, California.
DECK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for DECK, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Deckers Outdoor Corp ranked in the 66th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 97.5% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Deckers Outdoor Corp, consider:
Interest coverage, a measure of earnings relative to interest payments, is 83.4; that's higher than 95.3% of US stocks in the Consumer Cyclical sector that have positive free cash flow.
The business' balance sheet reveals debt to be 3% of the company's capital (with equity being the remaining amount). Approximately only 12.75% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
DECK's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 46.83% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DECK, try HOG, SNBR, CAAS, CRTO, and GCO.
Investment Thesis Big-volume "block" stock trades require negotiated off-exchange-floor "facilitations" of market liquidity by market-making firms to promptly balance supply-demand disparities as market anticipations evolve. The resulting MM capital risks are hedged by deals in derivative securities to offset price changes in the underlying stock until those temporary positions can...
Peter F. Way, CFA on Seeking Alpha | January 15, 2021