Movado Group designs, sources, markets, and distributes fine watches in the United States and internationally. The company operates in two segments, wholesale and retail. The company was founded in 1961 and is based in Paramus, New Jersey.
MOV Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Movado Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Movado Group Inc ranked in the 25th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Movado Group Inc, consider:
The compound growth rate in the free cash flow of Movado Group Inc over the past 5.59 years is -0.11%; that's better than only 14.8% of cash flow producing equities in the Consumer Cyclical sector, where it is classified.
MOV's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than just 10.51% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
GPC, BLL, SON, HGV, and INTG can be thought of as valuation peers to MOV, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.