Party City retails and wholesales paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties, gifts, and stationery. The company was founded in 1947 and is based in Elmsford, New York.
PRTY 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 Party City Holdco Inc. To summarize, we found that Party City Holdco Inc ranked in the 77th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 394.67%. The most interesting components of our discounted cash flow analysis for Party City Holdco Inc ended up being:
15% of the company's capital comes from equity, which is greater than merely 4.83% of stocks in our cash flow based forecasting set.
Party City Holdco Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -7.98. This coverage rate is greater than that of merely 9.8% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 17. This value is greater than 97.38% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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Party City Holdings ((PCHI)),wholly owned subsidiary of Party City Holdco (PRTY), prepaid ~$17.5M of the term loans outstanding under the Term Loan Credit Agreement.PCHI was required to make such prepayment in connection with the company’s sale of its Canadian-based Party City stores in October 2019; sale generated net cash proceeds of ~$129.5M.In line with...
Party City (PRTY) has had a woeful 2020 so far, with some frightening performance numbers as the specialty Halloween and party good retailer is heading into the fall and winter holiday seasons. Yet signs for optimism amid a pandemic and likely weaker holiday sales aren't really existent, while negative signals...
Damien Robbins on Seeking Alpha | September 29, 2020
ELMSFORD, N.Y., July 31, 2020 (GLOBE NEWSWIRE) -- Party City Holdco Inc. (NYSE:PRTY) today announced that its second quarter 2020 financial results will be released prior to market open on Thursday, August 6, 2020. The Company will host a conference call at 8:00 a.m. Eastern Time on that day to discuss the detailed financial results. Investors and analysts interested in participating in the call are invited to dial 866-270-1533 (international callers please dial 412-317-0797) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available online at investor.partycity.com. About Party CityParty City Holdco Inc. is the leading party goods company by revenue in North America and, we believe, the largest vertically integrated supplier...
ELMSFORD, N.Y., July 27, 2020 (GLOBE NEWSWIRE) -- Party City Holdco Inc. (together with its subsidiaries, the “Company”) today announced that: * its previously announced Exchange Offers, Consent Solicitations and Rights Offering (each as defined below) each have expired in accordance with their terms; * approximately 84.7% of the Existing Notes (as defined below) were validly tendered and accepted for exchange by the Company in the Exchange Offers; * in connection with the closing of the Exchange Offers, the Company has waived the related minimum participation condition; and * the Exchange Offers and the Rights Offering are expected to settle on or about July 30, 2020 (the “Settlement Date”).The Company’s announcement relates to its previously announced (i) offers to e...