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:
We started the process of determining a valid price forecast for Polaris Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Polaris Inc ranked in the 49th 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%. The most interesting components of our discounted cash flow analysis for Polaris Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 71. Its equity weight surpasses that of 66.5% of free cash flow generating stocks in the Consumer Cyclical sector.
Polaris Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 15.49% of tickers in our DCF set.
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 Polaris Inc? See ARKR, OMC, TGNA, ELY, and TACO.
Indian Motorcycle, America’s First Motorcycle Company, today announced a revolutionary new technology geared to improved rider comfort through a patent-pending system that delivers superior cooling for a more pleasant riding experience in warm weather.
There is good news and bad news from BMO Capital on Polaris Industries (PII).The firm says Polaris dealers are seeing records sales with no end in sight, but they have a shortage of inventory.Analyst Gerrick Johnson: "In the near term we are concerned that Polaris may be missing opportunities to...