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:
We started the process of determining a valid price forecast for Party City Holdco Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Party City Holdco Inc ranked in the 97th percentile in terms of potential gain offered. Our DCF model suggests the stock is undervalued by 10284.33%; returns of such proportions should be viewed with some skepticism, though. The most interesting components of our discounted cash flow analysis for Party City Holdco Inc ended up being:
The compound growth rate in the free cash flow of Party City Holdco Inc over the past 4.66 years is 1.65%; that's higher than 96.47% of free cash flow generating stocks in the Consumer Cyclical sector.
24% of the company's capital comes from equity, which is greater than merely 6.76% 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 just 9.4% 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
Want more companies with a valuation profile/forecast similar to that of Party City Holdco Inc? See MSC, CONN, DXLG, HZO, and BWMX.
Shares of retailer Party City fell sharply Wednesday after the company reported preliminary fourth quarter sales results that were lower than Wall Street expected. The Elmsford, New York-based company expects to report fourth quarter revenue between $645 million and $650 million, compared to FactSet's consensus estimate of $676.5 million. Party City shares were down 7.0% to $7.51 on Wednesday afternoon.
Shares of Party City (NYSE: PRTY) have crashed today, down by 13% as of 12:10 p.m. EST, after the company reported preliminary fourth-quarter results. Brand comparable sales are forecast to decline in the mid-single-digit range, which is worse than Party City's guidance of "flat to down a low single digit percentage." "We are pleased with the progress we continued to make in the fourth quarter against our strategic initiatives to reinforce our position of authority when it comes to celebrations," CEO Brad Weston said in a statement.
Party City Holdco Inc. shares slumped 12.6% in Wednesday premarket trading after the retailer said its fourth-quarter sales missed Street expectations. In a fourth-quarter business update issued after hours on Tuesday, Party City said preliminary revenue is $645 million to $650 million. The FactSet consensus is $676.5 million. Comparable sales are expected to fall in the mid-single digit range, while the FactSet consensus is for a 2.3% decline. "[T]he rapid surge in COVID-19 cases had a greater than expected impact on customer behavior in the months of November and December," said Brad Weston, chief executive of the company, in a statement. "This was evidenced by underperformance in regions like the Northeast, as well as in certain categories like tableware that are most impacted by th...
ELMSFORD, N.Y., Jan. 12, 2021 (GLOBE NEWSWIRE) -- Party City Holdco Inc. (NYSE: PRTY) today updated its outlook for total revenue, brand comparable sales, and Adjusted EBITDA for the fourth quarter fiscal 2020. The following are the Company’s updated expectations for the fourth quarter ended December 31, 2020: * Preliminary total revenue is estimated to be approximately $645 million to $650 million * Brand comparable sales are expected to decrease in the mid-single digit range * Adjusted EBITDA is estimated to be in the range of $75 million to $80 millionBrad Weston, Chief Executive Officer of Party City, stated, “We are pleased with the progress we continued to make in the fourth quarter against our strategic initiatives to reinforce our position of authority when it comes to celeb...