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:
Below please find a table outlining a discounted cash flow forecast for FSV, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that FirstService Corp ranked in the 10th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 92%. The most interesting components of our discounted cash flow analysis for FirstService Corp ended up being:
FirstService Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 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 10.06% 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 7.33% of them.
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 FirstService Corp? See CLDT, DUO, PEI, SAFE, and CCI.
Brookfield Property Partners (TSX:BPY)(USA) and FirstService (TSX:FSV)(USA) raised the dividend in Q1. Are these Dividend Aristocrats a buy? The post 3 Real Estate Stocks That Raised the Dividend in Q1 appeared first on The Motley Fool Canada .
FirstService Corporation (TSX: FSV; NASDAQ: FSV) ("FirstService") announced today that its Board of Directors has declared a quarterly cash dividend on the outstanding Common shares of US$0.165 per Common Share. The dividend is payable on July 7, 2020 to holders of Common Shares of record at the close of business on June 30, 2020.