Guess Inc. designs, markets, distributes and licenses a lifestyle collection of contemporary apparel, denim, handbags, watches, footwear and other related consumer products. The company was founded in 1981 and is based in Los Angeles, California.
GES Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Guess Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Guess Inc ranked in the 44th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Guess Inc, consider:
31% of the company's capital comes from equity, which is greater than only 15.12% of stocks in our cash flow based forecasting set.
Guess Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.04. This coverage rate is greater than that of only 18.61% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 15. This value is greater than 87.98% stocks in the Consumer Cyclical sector that generate 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 Guess Inc? See SGA, ETM, MUSA, NATH, and RL.
Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out […]
Guess (GES) reported its first-quarter earnings recently and the numbers were not pretty. The retailer reported an adjusted loss of $1.81 per share on top of revenues of $260 million. The top-line figure was a 52% loss over the same quarter 12 months prior. Furthermore, the adjusted bottom-line number did...