The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Educational Development Corp. To summarize, we found that Educational Development Corp ranked in the 56th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 39.33% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Educational Development Corp, consider:
Educational Development Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 24.27% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 24.65% of stocks in its sector (Consumer Cyclical).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
JWN, SIX, BBGI, ESCA, and AN can be thought of as valuation peers to EDUC, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Educational Development Corporation (“EDC”, or the “Company”) (EDUC) (http://www.edcpub.com) today reports significant revenue growth in April from UBAM division and the repayment of the $1.4M loan drawn pursuant to the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Randall White, CEO of Educational Development Corporation, announced the Company has had significant sales growth in UBAM and repaid the PPP loan.