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 57th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 12.67%. In terms of the factors that were most noteworthy in this DCF analysis for PII, they are:
The company's balance sheet shows it gets 74% of its capital from equity, and 26% of its capital from debt. Its equity weight surpasses that of 64.38% of free cash flow generating stocks in the Consumer Cyclical sector.
Polaris Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 18.12% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
RH, SGMS, RICK, BC, and BURL 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.