Extended Stay America, Inc. - Paired Shares (STAY) Company Bio
Extended Stay America develops, owns, and operates hotels in the United States and Canada under the Extended Stay Canada brand and Crossland Economy Studios brand. The company was founded in 1995 and is based in Charlotte, North Carolina.
STAY 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 Extended Stay America Inc. To summarize, we found that Extended Stay America Inc ranked in the 31th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for STAY, they are:
42% of the company's capital comes from equity, which is greater than just 23.28% of stocks in our cash flow based forecasting set.
The business' balance sheet suggests that 58% of the company's capital is sourced from debt; this is greater than 76.68% of the free cash flow producing stocks we're observing.
The weighted average cost of capital for the company is 8. This value is greater than 65.03% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
VIAC, BJRI, NIU, ORLY, and AMC can be thought of as valuation peers to STAY, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Extended Stay America, the leading mid-priced extended stay hotel company, today announces the debut of a new initiative, STAY Confident, to focus on the health, safety, and comfort of its guests. STAY Confident will build upon Extended Stay America’s experience as the only major hotel brand to remain 100% open since the beginning of the pandemic and the already high standards of housekeeping and hygiene at its 634 locations.