Sysco Corporation markets and distributes a range of food and related products primarily to the foodservice industry. The company was founded in 1969 and is based in Houston, Texas.
SYY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SYY, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Sysco Corp ranked in the 17th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Sysco Corp, consider:
Its compound free cash flow growth rate, as measured over the past 5.56 years, is 0% -- higher than merely 25% of stocks in our DCF forecasting set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than 59.78% of stocks in its sector (Consumer Defensive).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SYY, try EL, SAM, PEP, ALCO, and BF.B.
Introduction Over the years, I have observed that investors have a much more difficult time assessing when to sell a stock than they have assessing when to buy a stock. At least partially because of this dynamic, I have dedicated a lot of my time on Seeking Alpha writing articles...
Although the pandemic has adversely impacted food distributor Sysco Corporation’s (NYSE: SYY ) business, the recent pressure on its shares presents a buying opportunity, according to Edward Jones. The Sysco Analyst: John Boylan upgraded Sysco from Hold to Buy. The Sysco Thesis: While the stock is trading significantly below its 52-week high, Sysco is likely to “emerge from the pandemic a much stronger company,” Boylan said in the upgrade note. The analyst said he expects Sysco to take meaningful market … Full story available on Benzinga.com