Smith & Wesson Brands, Inc. is a holding company, which engages in the manufacture, design, and provision of firearms. It operates through the Firearms and Outdoor Products & Accessories segments. The Firearms segment comprises the manufacture of handguns, long guns, handcuffs, suppressors, and other firearm-related products for sale to a wide variety of customers. The Outdoor Products & Accessories segment engages in the distribution, manufacture, and design of reloading, gunsmithing, and gun cleaning supplies; stainless-steel cutting tools and accessories; flashlights; tree saws and related trimming accessories; shooting supplies, rests, and other related accessories; apparel; vault accessories; laser grips and laser sights; and a full range of products for survival and emergency preparedness. The company was founded by Michell A. Saltz on June 17, 1991 and is headquartered in Springfield, MA.
SWBI 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 Smith & Wesson Brands Inc. To summarize, we found that Smith & Wesson Brands Inc ranked in the 79th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 369.33% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Smith & Wesson Brands Inc, consider:
The company's balance sheet shows it gets 96% of its capital from equity, and 4% of its capital from debt. Its equity weight surpasses that of 88.45% of free cash flow generating stocks in the Industrials sector.
The business' balance sheet suggests that 4% of the company's capital is sourced from debt; this is greater than only 15.03% of the free cash flow producing stocks we're observing.
Smith & Wesson Brands Inc's effective tax rate, as measured by taxes paid relative to net income, is at 28 -- greater than 89.41% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HNI, ABM, KNOP, MGRC, and EML can be thought of as valuation peers to SWBI, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.