The Geo Group specializes in the ownership, leasing and management of correctional, detention and re-entry facilities and the provision of community-based services and youth services in the United States, Australia, South Africa and the United Kingdom. The company was founded in 1984 and is based in Boca Raton, Florida.
GEO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Geo Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Geo Group Inc ranked in the 59th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 109% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for GEO, they are:
33% of the company's capital comes from equity, which is greater than just 20.92% of stocks in our cash flow based forecasting set.
The business' balance sheet reveals debt to be 67% of the company's capital (with equity being the remaining amount). Approximately 79.04% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
As a business, Geo Group Inc experienced a tax rate of about 5% over the past twelve months; relative to its sector (Real Estate), this tax rate is higher than 80.79% 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 Geo Group Inc? See CBRE, WRI, XHR, HST, and LAMR.