Foot Locker operates as an athletic shoes and apparel retailer. The company operates in two segments, Athletic Stores and Direct-to-Customers. The company was founded in 1879 and is based in New York, New York.
FL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Foot Locker Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Foot Locker Inc ranked in the 4th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 98%. In terms of the factors that were most noteworthy in this DCF analysis for FL, they are:
Its compound free cash flow growth rate, as measured over the past 5.5 years, is -0.29% -- higher than just 6.11% of stocks in our DCF forecasting set.
Foot Locker Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -54.5. This coverage rate is greater than that of only 2.83% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Foot Locker Inc experienced a tax rate of about 27% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 88.61% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Foot Locker Inc? See EVC, FUN, PLAY, TIF, and ADNT.
NEW YORK, June 25, 2020 /PRNewswire/ -- Foot Locker kicks off its "Summer Sizzle," bringing the heat to make this summer a celebration of community and style. As seasons change, so does the sneakerhead flex. While summer usually brings cookouts, hoops in the driveway and poolside hangs…
Foot Locker kicks off its "Summer Sizzle," bringing the heat to make this summer a celebration of community and style. As seasons change, so does the sneakerhead flex. While summer usually brings cookouts, hoops in the driveway and poolside hangs with friends – this summer will undoubtedly be different – so Foot Locker is bringing the vibes to virtually celebrate the heat of the season like never before.