Dover Motorsports, Inc., through its subsidiaries, markets and promotes motorsports entertainment in the United States. The company promotes events under the auspices of the sanctioning body in motorsports, the National Association for Stock Car Auto Racing. It owns and operates Dover International Speedway with approximately 770 acres of land in Dover, Delaware; and Nashville Superspeedway with approximately 1,400 acres of land in Wilson County and Rutherford County, Tennessee. The company was founded in 1969 and is based in Dover, Delaware.
DVD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for DVD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Dover Motorsports Inc ranked in the 86th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 813.5%. As for the metrics that stood out in our discounted cash flow analysis of Dover Motorsports Inc, consider:
The business' balance sheet suggests that 0% of the company's capital is sourced from debt; this is greater than just 2.15% of the free cash flow producing stocks we're observing.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 0% of stocks in its sector (Consumer Cyclical).
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 DVD, try MIK, LAKE, KNDI, MHK, and CHTR.
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Dover Motorsports, Inc. (NYSE: DVD) Board of Directors today declared an annual cash dividend on both classes of common stock of $.07 per share. The dividend will be payable on December 10, 2020 to shareholders of record at the close of business on November 10, 2020. While we have historically paid dividends annually, due to the planned reopening of the Nashville Superspeedway, the potential impact of the pandemic on the scheduling of events and other developments in our business, in the future we may re-examine the frequency with which we evaluate and pay dividends.
Dover Motorsports, Inc. (NYSE: DVD) will report its earnings for the third quarter ended September 30, 2020 on the morning of Thursday, October 29, 2020. Commentary from the Company’s executive officers relative to the earnings release will be available on the Company’s website Thursday morning beginning at 9:00 a.m. ET.