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:
Below please find a table outlining a discounted cash flow forecast for OSTK, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Overstockcom Inc ranked in the 46th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 4.5%. As for the metrics that stood out in our discounted cash flow analysis of Overstockcom Inc, consider:
The business' balance sheet suggests that 2% of the company's capital is sourced from debt; this is greater than just 9.13% of the free cash flow producing stocks we're observing.
Overstockcom Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -40.5. This coverage rate is greater than that of merely 3.33% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Overstockcom Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Technology), this tax rate is higher than just 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 Overstockcom Inc? See CSCO, FLIR, KEYS, RMBS, and SWI.
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