The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for National CineMedia Inc. To summarize, we found that National CineMedia Inc ranked in the 79th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for NCMI, they are:
16% of the company's capital comes from equity, which is greater than merely 6.65% of stocks in our cash flow based forecasting set.
The business' balance sheet suggests that 84% of the company's capital is sourced from debt; this is greater than 93.32% of the free cash flow producing stocks we're observing.
The weighted average cost of capital for the company is 11. This value is greater than 64.7% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AN, SBGI, CTRN, BBY, and TLFA can be thought of as valuation peers to NCMI, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
It's Tuesday, the stock market is back in session, and National CineMedia (NASDAQ: NCMI) stock is down 9% as of 1:20 p.m. EDT after being down 10% earlier in the day. This is not the kind of result you'd expect from a stock that's just been upgraded and had its price target hiked on Wall Street. On Friday, Barrington Research upgraded National CineMedia shares to "outperform" with a $5.50 price target, predicting that the movie advertising and entertainment pre-show company's shares will benefit from a broad reopening of movie theaters.