Harley-Davidson designs, manufactures, and sells wholesale street-legal Harley-Davidson motorcycles, as well as a line of motorcycle parts, accessories, general merchandise, and related services. The company was founded in 1903 and is based in Milwaukee, Wisconsin.
HOG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Harley-Davidson Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Harley-Davidson Inc ranked in the 60th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 83.17% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for HOG, they are:
33% of the company's capital comes from equity, which is greater than only 17.09% of stocks in our cash flow based forecasting set.
Harley-Davidson Inc's weighted average cost of capital (WACC) is 5%; for context, that number is higher than only 0.48% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 0% of stocks in its sector (Consumer Cyclical).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
EAT, BDL, MNIQQ, MBUU, and THO can be thought of as valuation peers to HOG, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Harley-Davidson (NYSE: HOG) posted a big second-quarter loss Tuesday because the coronavirus pandemic shut motorcycle dealerships across the country, crushing sales. In a statement accompanying Harley's second-quarter earnings results, Jochen Zeitz, Harley's chairman, president, and CEO, announced a series of changes the company will make that will undoubtedly change the Harley-Davidson we know.
Harley-Davidson ([[HOG]], -2%) and Polaris ([[PII]], +7.5%) issued contrasting earnings reports before the bell today.The maker of the iconic Harley missed earnings expectations by a wide margin, but Polaris, which makes off-road vehicles and snowmobiles as well as motorcycles, blew past forecasts.The stocks are reacting accordingly. Both companies are navigating the same...
Harley-Davidson (HOG) reports motorcycle shipments fell 59% in Q2 vs. -43% consensus. U.S. retail sales were down 27% Y/Y and EMEA retail sales were 30% lower. Harley ended the quarter with cash of $3.9B vs. $925M a year ago. Looking ahead, it is evaluating plans to exit some international markets....
Shares of Harley Davidson (NYSE: HOG) fell over 5% on Tuesday during the pre-market hours after the motorcycle manufacturer posted a wide surprise loss in the second quarter, despite beating on the top-line. Revenues for the second quarter almost halved to $865 million, as the global pandemic hit sales in all markets. Worldwide shipments fell […]