Daily Journal Corporation publishes newspapers and Web sites in California, Arizona, and Utah. It operates through two segments, Traditional Business and Journal Technologies. The company was founded in 1987 and is based in Los Angeles, California.
DJCO 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 Daily Journal Corp. To summarize, we found that Daily Journal Corp ranked in the 0th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 100%. The most interesting components of our discounted cash flow analysis for Daily Journal Corp ended up being:
The compound growth rate in the free cash flow of Daily Journal Corp over the past 5.29 years is -0.46%; that's better than merely 2.52% of cash flow producing equities in the Consumer Cyclical sector, where it is classified.
The business' balance sheet reveals debt to be 7% of the company's capital (with equity being the remaining amount). Approximately merely 18.18% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Daily Journal Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -75.37. This coverage rate is greater than that of merely 2.12% of stocks we're observing for the purpose of forecasting via discounted cash flows.
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 DJCO, try CULP, FAT, GDEN, GOOS, and HRB.