Office Depot, Inc. sells office supplies, technology products and solutions, business machines and related supplies, facilities products, and office furniture. The company was founded in 1986 and is based in Boca Raton, Florida.
ODP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Office Depot Inc. To summarize, we found that Office Depot Inc ranked in the 94th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 3703.5% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Office Depot Inc, consider:
In the past 5.2 years, Office Depot Inc has a compound free cash flow growth rate of 0.59%; that's better than 90.85% of cash flow producing equities in the Consumer Cyclical sector, where it is classified.
38% of the company's capital comes from equity, which is greater than only 20.74% of stocks in our cash flow based forecasting set.
Office Depot Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 6.24% of tickers in our DCF set.
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 Office Depot Inc? See MLR, RLH, BH, SUP, and TM.
Office Depot (ODP) is the leading gainer on Robinhood in terms of positions added over the last 24 hours. It's unclear if the Robinhood traders just like stock splits in general or are being pulled in by the new share price. Adding to the confusion, some quote providers (including Seeking...
It's not every day you see a stock's share price jump more than 800%, but in a market that has seen a surge in day-trading activity, it might seem like anything's possible. Office Depot has been under pressure for years, as the office products retailer's stock has lost two-thirds of its value since 2015. Competition from online retail has made Office Depot's brick-and-mortar store look costly by comparison, and business has fallen off steadily.
Shares of Office Depot Inc. fell in morning trading Wednesday, after a reverse stock split in effect multiplied the price by 10. The office supply retailer's stock closed at a split-adjusted $23.50, on Tuesday (a pre-split-adjusted $2.35), after a 1-for-10 reverse stock split went into effect after Tuesday's close. The stock was down 5.7% at $22.17 in recent trading. It has lost 19.1% year to date, while the S&P 500 has slipped 3.6%.