Franklin Covey provides training and consulting services in the areas of leadership, productivity, strategic execution, trust, sales force performance, customer loyalty, and communication effectiveness skills worldwide. The company was founded in 1983 and is based in Salt Lake City, Utah.
FC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Franklin Covey Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Franklin Covey Co ranked in the 46th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Franklin Covey Co ended up being:
Franklin Covey Co's effective tax rate, as measured by taxes paid relative to net income, is at 77 -- greater than 96.15% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Industrials), Franklin Covey Co has a reliance on debt greater than just 23.44% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
OBCI, PH, AOS, ATI, and MIDD can be thought of as valuation peers to FC, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Investment Thesis The market has punished Franklin Covey's (FC) stock price, sending it tumbling 50% YTD. Given its solvency and growing SAAS segment, FC has about 100% upside to its valuation today. Background Franklin Covey is a leader in the highly fragmented L&D (Leadership and Development) corporate training industry. It...