Polaris Industries designs, engineers, manufactures, and markets off-road vehicles, snowmobiles, motorcycles, and small vehicles primarily in the United States, Canada, Western Europe, Australia, and Mexico. The company was founded in 1987 and is based in Medina, Minnesota.
PII 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 Polaris Inc. To summarize, we found that Polaris Inc ranked in the 41th 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 Polaris Inc ended up being:
The company has produced more trailing twelve month cash flow than 78.46% of its sector Consumer Cyclical.
Polaris Inc's effective tax rate, as measured by taxes paid relative to net income, is at 62 -- greater than 95.69% of US stocks with positive free cash flow.
Polaris Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.37. This coverage rate is greater than that of merely 23.57% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CHUY, DPZ, NYT, ULTA, and BSET can be thought of as valuation peers to PII, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Longbow Research is out with a positive note on Polaris ([[PII]] +5.2%) after channel checks came back in glowing hot. The firm expects Polaris to post a strong quarter and sees momentum building into next year."We are upgrading PII shares to BUY and raising our FY2H20 & FY21 estimates after...
Polaris (PII) has signed a 10-year partnership with Zero Motorcycles in off-road vehicles ((ORV)) and snowmobiles, to co-develop electric vehicles as a cornerstone of rev’d up—company’ new electrification strategy.Through rEV’d up, company aims to offer customers an electric vehicle option within each of its core product segments by 2025, with the first vehicle...
During Tuesday's Mad Money program, Jim Cramer told viewers that during most economic downturns discretionary spending plunges. All four companies are in uptrends but let's check the charts of Polaris Industries because it gapped up to a new high yesterday. With the rally in PII yesterday on heavy trading volume another look at PII is a good idea.