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:
Below please find a table outlining a discounted cash flow forecast for NDLS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that NOODLES & Co ranked in the 99th percentile in terms of potential gain offered. As the table below shows, the model suggests the stock is dramatically undervalued -- investors should note, though, that such returns are always unlikely and not to be expected. In terms of the factors that were most noteworthy in this DCF analysis for NDLS, they are:
Its compound free cash flow growth rate, as measured over the past 0.3 years, is 2.88% -- higher than 97.83% of stocks in our DCF forecasting set.
As a business, NOODLES & Co experienced a tax rate of about 2% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than just 20.38% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as NDLS, try HUD, HMC, CMLS, ZXAIY, and FCAU.