Escalade Incorporated manufactures and sells sporting goods to retailers, dealers, and wholesalers primarily in North America and Europe. It manufactures, imports, and distributes various sporting goods brands in basketball goals, archery, indoor and outdoor game recreation, and fitness products. The company was founded in 1922 and is based in Evansville, Indiana.
ESCA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Escalade Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Escalade Inc ranked in the 42th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Escalade Inc, consider:
The business' balance sheet suggests that 0% of the company's capital is sourced from debt; this is greater than only 4.11% 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
AAP, LBTYA, RH, WRK, and ZAGG can be thought of as valuation peers to ESCA, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
EVANSVILLE, Ind., Dec. 7, 2020 /PRNewswire/ -- Escalade Sports®, a wholly owned subsidiary of Escalade, Inc. (NASDAQ: ESCA) and global leader in sports, indoor and outdoor recreational equipment and games, today announced that it has acquired substantially all of the business and assets…