Jack In the Box operates and franchises Jack in the Box quick-service restaurants and Qdoba Mexican Grill fast-casual restaurants in the United States. The company was founded in 1951 and is based in San Diego, California.
JACK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for JACK, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Jack In The Box Inc ranked in the 43th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 17.67%. The most interesting components of our discounted cash flow analysis for Jack In The Box Inc ended up being:
42% of the company's capital comes from equity, which is greater than merely 23.6% of stocks in our cash flow based forecasting set.
The business' balance sheet reveals debt to be 58% of the company's capital (with equity being the remaining amount). Approximately 76.36% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
The weighted average cost of capital for the company is 8. This value is greater than 58.63% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SMRT, GPK, DECK, ETM, and MAR can be thought of as valuation peers to JACK, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
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