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:
Below please find a table outlining a discounted cash flow forecast for LB, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that L Brands Inc ranked in the 46th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of L Brands Inc, consider:
24% of the company's capital comes from equity, which is greater than just 14.19% of stocks in our cash flow based forecasting set.
L Brands Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 0.52. This coverage rate is greater than that of just 21.57% 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 48% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 96.21% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
TSQ, CCK, DECK, NTN, and DVD can be thought of as valuation peers to LB, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.