Oxford Industries, Inc., an apparel company, designs, sources, markets, and distributes products of company owned lifestyle brands, and licensed and private labels apparel products worldwide. The company was founded in 1942 and is based in Atlanta, Georgia.
OXM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for OXM, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Oxford Industries Inc ranked in the 74th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 384.83%. In terms of the factors that were most noteworthy in this DCF analysis for OXM, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 75.24; that's higher than 93.85% of US stocks in the Consumer Cyclical sector that have positive free cash flow.
Oxford Industries Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 10.95% of tickers in our DCF set.
OXM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than just 10.95% of tickers in our DCF set.
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 OXM, try KSS, BJ, AN, F, and HBI.