Mattel offers dolls and accessories, vehicles and play sets, and games and puzzles under the Mattel Girls & Boys brands, including Barbie, Monster High, Disney Classics, Ever After High, Little Mommy, Polly Pocket, Hot Wheels, Matchbox, CARS, Disney Planes, BOOMco, Radica, Toy Story, Max Steel, WWE Wrestling, and Batman. The company was founded in 1945 and is based in El Segundo, California.
MAT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MAT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Mattel Inc ranked in the 3th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 99%. As for the metrics that stood out in our discounted cash flow analysis of Mattel Inc, consider:
Its compound free cash flow growth rate, as measured over the past 5.83 years, is -0.31% -- higher than only 5.06% of stocks in our DCF forecasting set.
Mattel Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 0.21. This coverage rate is greater than that of only 19.4% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Mattel Inc experienced a tax rate of about 56% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 96.52% 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 MAT, try DIS, EVC, FLL, FND, and H.