We started the process of determining a valid price forecast for National Security Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that National Security Group Inc ranked in the 16th 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 National Security Group Inc ended up being:
The company's compound free cash flow growth rate over the past 5.76 years comes in at -0.2%; that's greater than only 9.54% of US stocks we're applying DCF forecasting to.
The weighted average cost of capital for the company is 8. This value is greater than 68.67% stocks in the Financial Services sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
EZPW, NICK, BLK, AXS, and VIRT can be thought of as valuation peers to NSEC, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
In light of internal memos that raised serious questions about the nature of the FBI’s investigation of former National Security Sec. Michael Flynn, Judge Jeanine Pirro called it a “classic example of the swamp in Washington.”