Kohl's Corporation operates department stores in the United States, offering private label, exclusive, and national brand apparel, footwear, accessories, beauty, and home products to children, men, and women customers. The company was founded in 1962 and is based in Menomonee Falls, Wisconsin.
KSS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for KSS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that KOHLS Corp ranked in the 75th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for KOHLS Corp ended up being:
The company's compound free cash flow growth rate over the past 5.54 years comes in at -0.06%; that's greater than merely 20.97% of US stocks we're applying DCF forecasting to.
23% of the company's capital comes from equity, which is greater than merely 14.36% of stocks in our cash flow based forecasting set.
The weighted average cost of capital for the company is 5. This value is greater than just 5.73% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as KSS, try JCP, LZB, AN, LKQ, and TACO.