Monro Muffler Brake Inc. operates a chain of stores providing automotive undercar repair and tire services in the United States. The company was founded in 1957 and is based in Rochester, New York.
MNRO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MNRO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Monro Inc ranked in the 31th 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 Monro Inc ended up being:
The company's balance sheet shows it gets 60% of its capital from equity, and 40% of its capital from debt. Its equity weight surpasses that of 47.7% of free cash flow generating stocks in the Consumer Cyclical sector.
The business' balance sheet suggests that 40% of the company's capital is sourced from debt; this is greater than 62.65% of the free cash flow producing stocks we're observing.
Monro Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 2.72. This coverage rate is greater than that of 51.1% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ATR, AAP, JOUT, PSO, and DLB can be thought of as valuation peers to MNRO, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.