Skechers designs, develops and markets a diverse range of lifestyle footwear for men, women and children, as well as performance footwear for men and women. The company was founded in 1992 and is based in Manhattan Beach, California.
SKX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Skechers Usa Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Skechers Usa Inc ranked in the 44th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 19.33% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Skechers Usa Inc, consider:
Skechers Usa Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 20.75% of tickers in our DCF set.
SKX'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 only 20.75% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), Skechers Usa Inc has a reliance on debt greater than only 23.64% of them.
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 SKX, try SIRI, TSQ, AZO, DVD, and JOUT.