PROG Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, provides commercial equipment finance and leasing services. PROG Holdings serves customers in the United States.
PRG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for PROG Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that PROG Holdings Inc ranked in the 76th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 256.5%. As for the metrics that stood out in our discounted cash flow analysis of PROG Holdings Inc, consider:
The compound growth rate in the free cash flow of PROG Holdings Inc over the past 5.48 years is 0.36%; that's better than 76.13% of cash flow producing equities in the Industrials sector, where it is classified.
PROG Holdings Inc's effective tax rate, as measured by taxes paid relative to net income, is at 19 -- greater than 75.11% of US stocks with positive free cash flow.
PROG Holdings Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -20.68. This coverage rate is greater than that of only 5.21% 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
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as PRG, try TRU, OSK, GFN, APWC, and URI.
At Home saw its IBD SmartSelect Composite Rating rise to 99 Thursday, up from 93 the day before. The stock also sports a 97 Relative Strength Rating. The revised score means the stock currently tops 99% of all other stocks in terms of key performance metrics and technical strength.