PriceSmart owns and operates membership shopping warehouse clubs in Latin American and the Caribbean. The company was founded in 1994 and is based in San Diego, California.
PSMT 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 Pricesmart Inc. To summarize, we found that Pricesmart Inc ranked in the 41th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Pricesmart Inc, consider:
PSMT's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 29.85% of tickers in our DCF set.
Pricesmart Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 20.55. This coverage rate is greater than that of 87.84% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Pricesmart Inc experienced a tax rate of about 24% over the past twelve months; relative to its sector (Consumer Defensive), this tax rate is higher than 88.17% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as PSMT, try KMB, FIZZ, CHD, LW, and BUD.
Image source The bulk discount warehouse stores in the US - Costco (COST) and BJ's (BJ) - have benefited enormously from stay-at-home orders since the pandemic began. These stores were well-positioned to service customer needs not only because they were deemed essential - and could therefore operate during the worst...
DUBLIN--(BUSINESS WIRE)--The "PriceSmart - Buying, Merchandising & Operating" report has been added to ResearchAndMarkets.com's offering. The report provides all the information needed to prepare and sell PriceSmart internationally. Written by a former warehouse club buyer, the report bridges the information gap between what you know and what club buyers want and provides a clear window on this growing $3.1 billion Latin American and Caribbean club operator. Key Information Included Categor
DUBLIN--(BUSINESS WIRE)--The "Warehouse Club Industry Guide" report has been added to ResearchAndMarkets.com's offering. The effect of COVID-19 has been dramatic on the warehouse club industry in the short term and likely represents an inflection point that will drive growth over the long term. The Warehouse Club Industry Guide (2020 edition) provides all the information needed to prepare and sell BJ's, Costco, PriceSmart and Sam's Club buyers in the United States and internationally. Written b
SAN DIEGO, Aug. 7, 2020 /PRNewswire/ -- PriceSmart, Inc. (NASDAQ: PSMT) today announced that for the month of July 2020 net merchandise sales increased 2.2% to $261.4 million from $255.8 million in July a year earlier. Foreign currency exchange fluctuations impacted net merchandise sales…