Hibbett Sports operates sporting goods retail stores, offering a range of merchandise, including athletic footwear, team sports equipment, athletic and fashion apparel, and related accessories.The company was founded in 1945 and is based in Birmingham, Alabama.
HIBB 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 Hibbett Sports Inc. To summarize, we found that Hibbett Sports Inc ranked in the 84th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1005.5%. As for the metrics that stood out in our discounted cash flow analysis of Hibbett Sports Inc, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 109.15 -- which is good for besting 95.69% of its peer stocks (US stocks in the Consumer Cyclical sector with positive cash flow).
Hibbett Sports Inc's weighted average cost of capital (WACC) is 5%; for context, that number is higher than merely 3.65% of tickers in our DCF set.
HIBB's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 3.65% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as HIBB, try MLR, EXPR, GIL, WGO, and RLH.