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:
We started the process of determining a valid price forecast for Hibbett Sports Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Hibbett Sports Inc ranked in the 70th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 147.83%. In terms of the factors that were most noteworthy in this DCF analysis for HIBB, they are:
Interest coverage, a measure of earnings relative to interest payments, is 2,771.48 -- which is good for besting 99.75% 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 8%; for context, that number is higher than merely 14.25% of tickers in our DCF set.
HIBB's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than merely 14.25% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MLR, FL, SLGN, MUSA, and MBUU can be thought of as valuation peers to HIBB, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
BIRMINGHAM, Ala., Dec. 17, 2020 /PRNewswire/ -- Hibbett Sports (NASDAQ:HIBB), a Birmingham based premium footwear and athleisure retailer with more than 1,000 Hibbett Sports and City Gear specialty stores nationwide, today announced an exclusive partnership with Nike and footwear news…
Hibbett Sports, Inc. (NASDAQ: HIBB) Q3 2021 earnings call dated Nov. 20, 2020 Corporate Participants: Jason Freuchtel — Director of Investor Relations Michael E. Longo — Chief Executive Officer and President Jared S. Briskin — Senior Vice President […]