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 39th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for JACK, they are:
The company's balance sheet shows it gets 49% of its capital from equity, and 51% of its capital from debt. Its equity weight surpasses that of just 23.75% of free cash flow generating stocks in the Consumer Cyclical sector.
Its compound free cash flow growth rate, as measured over the past 5.52 years, is 0% -- higher than only 24.48% of stocks in our DCF forecasting set.
Jack In The Box Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 17.41% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
IHG, VRA, DPZ, HAS, and GHG 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.