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Liberty Interactive Corporation ("Liberty Interactive") acquired the remaining 62% of HSN, Inc. that it did not already own. As a result of the Merger, HSN shareholders (other than Liberty Interactive and its wholly owned subsidiaries) received 1.65 shares of Liberty Interactive's Series A QVC Group common stock in exchange for each share of HSN common stock surrendered in the Merger. Cash was received in lieu of fractional shares.
Qurate Retail, Inc. - Series A (QRTEA): Price and Financial Metrics
Qurate Retail, Inc. - Series A (QRTEA) Company Bio
Qurate Retail Group (Formerly) Liberty Interactive Corporation markets and sells various consumer products primarily through live televised shopping programs, Websites, and mobile applications. The company was founded in 1994 and is based in Englewood, Colorado.
QRTEA 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 Qurate Retail Inc. To summarize, we found that Qurate Retail Inc ranked in the 54th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Qurate Retail Inc ended up being:
The compound growth rate in the free cash flow of Qurate Retail Inc over the past 5.45 years is 0.01%; that's better than merely 17.98% of cash flow producing equities in the Technology sector, where it is classified.
30% of the company's capital comes from equity, which is greater than merely 13.69% of stocks in our cash flow based forecasting set.
Qurate Retail Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.5. This coverage rate is greater than that of just 23.2% 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 Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as QRTEA, try ALOT, HPE, MKSI, AVT, and PRFT.
Strip malls are history. - Jeff Bezos Let's be honest. Many of us have been spending a lot more time in front of our televisions and computer screens lately. Whether you're watching the Sopranos for the first time or placing your order for next Monday's grocery pick up, odds are...
Michael A. Gayed, CFA on Seeking Alpha | September 23, 2020
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