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 85th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1177%. As for the metrics that stood out in our discounted cash flow analysis of Hibbett Sports Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 109.15 -- which is good for besting 95.62% 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 just 2.95% 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 just 2.95% of tickers in our DCF set.
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 Hibbett Sports Inc? See EXPR, UFAB, FNKO, WGO, and MLR.