Dicks Sporting Goods is a sporting goods retailer primarily in the eastern United States. The company provides hardlines, including sporting goods equipment, fitness equipment, golf equipment, and hunting and fishing gear products; apparel; and footwear products and accessories. The company was founded in 1948 and is based in Coraopolis, Pennsylvania.
DKS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Dick'S Sporting Goods Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Dick'S Sporting Goods Inc ranked in the 83th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 707.67% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for DKS, they are:
As a business, DKS is generating more cash flow than 88.56% of positive cash flow stocks in the Consumer Cyclical.
Dick'S Sporting Goods Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 4.39% of tickers in our DCF set.
DKS'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 only 4.39% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CWH, LZB, MIK, CAAS, and NCMI can be thought of as valuation peers to DKS, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Dick's Sporting Goods ([[DKS]] +1.6%) says it will expand its nationwide footprint with the opening of six Dick's Sporting Goods stores, two combination DICK'S and Golf Galaxy locations and three Dick's Sporting Goods Warehouse Sale locations in October.The retailer will also open a limited number of Soccer Shops, a new, elevated...
UBS analyst Michael Lasser weighs in on today's report on August retail sales. "We think the deceleration in trends in August (vs. 3.5% in July) was largely driven by the fading tailwinds from gov't stimulus, and a disrupted back-to-school season. For the month, sales grew by 0.1% YoY to $546b....
The ratings on six P&I classes were affirmed and the rating on one P&I class was confirmed due to the pool's share of defeasance and the transaction's key metrics, including Moody's loan-to-value (LTV) ratio, Moody's stressed debt service coverage ratio (DSCR) and the transaction's Herfindahl Index (Herf), being within acceptable ranges. The rating on two P&I classes, Cl. E and Cl. F, were downgraded due to anticipated losses from specially serviced and troubled loans.