Floor & Decor Holdings, Inc. operates as a specialty retailer of hard surface flooring and related accessories. Its stores offer a range of tile, wood, and laminate and natural stone flooring products, as well as decorative and installation accessories. The company serves professional installers, commercial businesses, and do it yourself customers. The company was founded in 2000 and is based in Smyrna, Georgia.
FND Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Floor & Decor Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Floor & Decor Holdings Inc ranked in the 53th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 8.5% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for FND, they are:
FND's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 32.86% of tickers in our DCF set.
Floor & Decor Holdings Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 24.28. This coverage rate is greater than that of 88.46% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Consumer Cyclical), Floor & Decor Holdings Inc has a reliance on debt greater than only 16.53% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CMLS, HMTV, LOCO, ROST, and GPC can be thought of as valuation peers to FND, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
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