FirstService Corporation provides property services in North America. It manages residential communities; and provides swimming pool and recreational facility management services to commercial swimming facilities and residential pools. The company was founded in 1988 and is based in Toronto, Canada.
FSV Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for FirstService Corp. To summarize, we found that FirstService Corp ranked in the 9th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for FSV, they are:
FirstService Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
FirstService Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -6. This coverage rate is greater than that of only 11.1% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Real Estate), FirstService Corp has a reliance on debt greater than only 6.57% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AXR, ESBA, ESRT, UDR, and CDR can be thought of as valuation peers to FSV, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.
Acquires Midboro Management, LLCTORONTO, Jan. 14, 2021 (GLOBE NEWSWIRE) -- FirstService Corporation (TSX and NASDAQ: FSV) (“FirstService”) announced today that FirstService Residential, the North American property management leader, has recently acquired Midboro Management, LLC (“Midboro”). Michael Wolfe, President of Midboro, has retained a minority equity interest and will continue to run day-to-day operations. Terms of the transaction were not disclosed. Founded in 1963, Midboro is one of the leading residential property management firms in New York City, with 15,000 units under management across more than 150 condominium and cooperative properties. With the addition of Midboro, FirstService Residential’s New York operations will oversee more than 600 properties encompassing almost ...