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 55th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 60.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Escalade Inc ended up being:
As a business, ESCA is generating more cash flow than only 16.67% of positive cash flow stocks in the Consumer Cyclical.
The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately only 6.36% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
ESCA'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 60.21% of tickers in our DCF set.
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 ESCA, try TSCO, ETH, WEN, AAP, and BBGI.