Noodles & Company develops and operates fast casual restaurants in the United States, offering cooked-to-order dishes, including noodles and pasta, soups, salads, sandwiches, and appetizers. The company was founded in 1995 and is based in Broomfield, Colorado.
NDLS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for NOODLES & Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that NOODLES & Co ranked in the 46th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 7.83% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for NDLS, they are:
NOODLES & Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -3.93. This coverage rate is greater than that of just 13.28% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, NOODLES & Co experienced a tax rate of about 0% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of NOODLES & Co? See F, SIRI, BWA, NLS, and ORLY.
Image source Fast casual chain Noodles & Company (NDLS) has been a seemingly perpetual turnaround story for the past few years. I was vehemently bearish when Noodles came public several years ago, and was for some time. However, I changed my tune last year amid a successful relaunch of the...
BROOMFIELD, Colo., Aug. 12, 2020 /PRNewswire/ -- Noodles & Company (NASDAQ:NDLS), known for serving classic noodle, Zoodle and Caulifloodle dishes from around the world, announced a partnership with the acclaimed People's Improv Theater in New York City and the iO Theater in Chicago to…