Taubman Centers engages in the ownership, management, leasing, acquisition, development, and expansion of regional retail shopping centers. The company was founded in 1950 and is based in Bloomfield Hills, Michigan.
TCO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Taubman Centers Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Taubman Centers Inc ranked in the 14th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for TCO, they are:
The business' balance sheet reveals debt to be 58% of the company's capital (with equity being the remaining amount). Approximately 73.15% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
TCO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 5%; for context, that number is higher than 32.04% of tickers in our DCF set.
As a business, Taubman Centers Inc experienced a tax rate of about 2% over the past twelve months; relative to its sector (Real Estate), this tax rate is higher than 69% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Taubman Centers Inc? See AXR, SELF, KW, BDN, and PEI.