L Brands Inc. operates as a specialty retailer of womens intimate and other apparel, beauty and personal care products, and accessories. The company operates in three segments: Victorias Secret, Bath & Body Works, and Victoria's Secret and Bath & Body Works International. The company was founded in 1963 and is based in Columbus, Ohio.
LB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for L Brands Inc. To summarize, we found that L Brands Inc ranked in the 25th 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 LB, they are:
The company's compound free cash flow growth rate over the past 5.46 years comes in at -0.01%; that's greater than merely 24% of US stocks we're applying DCF forecasting to.
L Brands Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.96. This coverage rate is greater than that of just 20.41% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, L Brands Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than merely 0% of stocks generating 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 LB, try AXL, FTDR, TJX, WMG, and BVH.
L Brands ([[LB]] +5.2%) is added by JPMorgan to its Analyst Focus List and called a Value Idea pick. Analyst Matthew Boss: "We maintain shares of LB at Overweight with a revised $42 Dec 2021 price target based on 6x our FY22E EBITDA. The combination of (i) 2H gross profit...
L Brands (LB) upsizes its previously announced offering to sell $750M aggregate principal amount of senior notes due 2030 to an aggregate principal amount of $1B.It is priced with a coupon of 6.625% in a private placement offering to eligible purchasers. These are senior unsecured obligations.Expected to close on September 30,...
The UK arm of L Brands' high-end lingerie brand went into administration in June after all its 25 stores were forced to close due to the COVID-19 Pandemic. L Brands said the joint venture will acquire the majority of the assets of the Victoria's Secret U.K. business and operate all its stores in the country and Ireland.