Overstock.com is an online retailer offering discount brand name, non-brand name and closeout merchandise, including furniture, home decor, bedding and bath, housewares, jewelry and watches, apparel and designer accessories, electronics and computers, and sporting goods, among other products. The company was founded in 1997 and is based in Salt Lake City, Utah.
OSTK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Overstockcom Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Overstockcom Inc ranked in the 47th percentile in terms of potential gain offered. The most interesting components of our discounted cash flow analysis for Overstockcom Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is -40.5 -- which is good for besting only 3.65% of its peer stocks (US stocks in the Technology sector with positive cash flow).
The business' balance sheet suggests that 2% of the company's capital is sourced from debt; this is greater than only 9.21% of the free cash flow producing stocks we're observing.
Overstockcom Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MSI, ENPH, MCHP, AUDC, and JCS can be thought of as valuation peers to OSTK, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
With Q3 in the books, it is time to take a heat check on the consumer sector.For the most part, Q3 featured a continuation of the rally in EV names and online retailers seen throughout Q2 with some work-from-home, learn-from-home and exercise-from-home trends also in play.Top consumers gainers YTD include...
D.E Shaw discloses a stake of 5.1% in Overstock.com (OSTK). The filing lists D.E. Shaw as a passive investor.D.E. Shaw only held 270K shares at the end of Q2, compared to the 2.2M shares under its belt now. SEC Form 13G Shares of Overstock are up 1.22% in AH trading.Here...
Joining me today are Jonathan Johnson, CEO of Overstock and president of Medici Ventures; and Adrianne Lee, CFO of Overstock. Dave Nielsen, president of Overstock Retail; and Saum Noursalehi, CEO of tZERO, will be available for Q&A.
From the absolute bottom to today's top, Overstock is a 30-bagger -- one of the most incredible runs you'll ever see in under five months. Overstock's total net revenue increased to $783 million in Q2. Growth for Overstock has also been across the board.