Signet Jewelers Limited Common Shares (SIG) Company Bio
Signet Jewelers is the world's largest retailer of diamond jewelry. Signet operates approximately 3,600 stores primarily under the name brands of Kay Jewelers, Zales, Jared The Galleria Of Jewelry, H.Samuel, Ernest Jones, Peoples and Piercing Pagoda. The company was founded in 1950 and is based in Hamilton, Bermuda.
SIG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Signet Jewelers Ltd with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Signet Jewelers Ltd ranked in the 72th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 235.67% on a DCF basis. The most interesting components of our discounted cash flow analysis for Signet Jewelers Ltd ended up being:
34% of the company's capital comes from equity, which is greater than merely 12.13% of stocks in our cash flow based forecasting set.
Signet Jewelers Ltd's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -6.07. This coverage rate is greater than that of merely 11.31% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 15. This value is greater than 89.87% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
LEE, LKQ, VIAC, SNBR, and SCVL can be thought of as valuation peers to SIG, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Signet Jewelers (NYSE: SIG) is a turnaround retail play that bets on eCommerce growth and loosening government restrictions that will create pent-up demand. The stock has rallied strongly in recent months. A pullback can bring this stock back into an attractive buying range. Worthy of being on any long-term investor's...
Victor Burdukov on Seeking Alpha | September 21, 2020
Signet Jewelers Limited. (SIG) was one another retailer that was thrown away by the market scared and uncertain about the extent of the damage that Covid-19 and lockdown would have on the retail sector. As a jewelry retailer, the business was set to suffer from not just the lockdown but...
Signet (NYSE: SIG) reported second-quarter 2021 financial before after the opening bell on Thursday. The company reported a 35% decrease in Q2 revenues to $888 million, beating Wall Street consensus. Adjusted loss of $1.13 per share was also narrower than what analysts had anticipated. SIG shares rose 2% immediately following the announcement. The stock has […]
How do you pick the next stock to invest in? One way would be to spend days of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of […]
AKRON, Ohio, July 15, 2020 /PRNewswire/ -- Signet Jewelers' Zales brand launched an exclusive fine jewelry fashion collection inspired by the most beloved female Super Hero, Wonder Woman. Whether a ring, bangle or necklace, each piece in Zales' first-of-its-kind, 28-piece collection is…