RCI Hospitality Holdings, Inc. owns and/or operates upscale adult nightclubs serving primarily businessmen and professionals in the United States. The company operates in two segments, Nightclubs and Bombshells Restaurants and Bars. The company was founded in 1982 and is based in Houston, Texas.
RICK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Rci Hospitality Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Rci Hospitality Holdings 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 480.83%. The most interesting components of our discounted cash flow analysis for Rci Hospitality Holdings Inc ended up being:
33% of the company's capital comes from equity, which is greater than only 20.73% of stocks in our cash flow based forecasting set.
The weighted average cost of capital for the company is 6. This value is greater than merely 21.23% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as RICK, try BYD, QSR, MCFT, UAA, and CHUY.