Michaels Companies owns and operates a chain of arts and crafts specialty retail stores under the Michaels and Aaron Brothers names in North America. The company was founded in 2013 and is based in Irving, Texas.
MIK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MIK, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Michaels Companies Inc ranked in the 89th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2403.17%. As for the metrics that stood out in our discounted cash flow analysis of Michaels Companies Inc, consider:
6% of the company's capital comes from equity, which is greater than merely 3.17% of stocks in our cash flow based forecasting set.
Michaels Companies Inc's weighted average cost of capital (WACC) is 5%; for context, that number is higher than just 3.63% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), Michaels Companies Inc has a reliance on debt greater than 94.63% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FOXA, MSGN, BITA, ARMK, and TILE can be thought of as valuation peers to MIK, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.