The Macerich Company engages in the acquisition, ownership, development, redevelopment, management and leasing of regional and community shopping centers located throughout the United States. The company was founded in 1964 and is based in Santa Monica, California.
MAC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Macerich Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Macerich Co ranked in the 3th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Macerich Co ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 0.88 -- which is good for besting merely 22.98% of its peer stocks (US stocks in the Real Estate sector with positive cash flow).
The company's compound free cash flow growth rate over the past 5.71 years comes in at -0.27%; that's greater than only 5.57% of US stocks we're applying DCF forecasting to.
20% of the company's capital comes from equity, which is greater than only 6.36% of stocks in our cash flow based forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Real Estate that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as MAC, try APLE, COLD, CPT, CWK, and FREVS.
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