Thor Industries designs, manufactures, and sells a range of recreational vehicles, and related parts and accessories in the United States and Canada. It operates through two segments, Towable Recreational Vehicles and Motorized Recreational Vehicles. The company was founded in 1980 and is based in Elkhart, Indiana.
THO 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 Thor Industries Inc. To summarize, we found that Thor Industries Inc ranked in the 63th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 103% on a DCF basis. The most interesting components of our discounted cash flow analysis for Thor Industries Inc ended up being:
The company's balance sheet shows it gets 73% of its capital from equity, and 27% of its capital from debt. Its equity weight surpasses that of 68.55% of free cash flow generating stocks in the Consumer Cyclical sector.
Thor Industries Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 18.04% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
IGT, HOG, MYE, ALSN, and JOUT can be thought of as valuation peers to THO, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
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Geneva Long, Bowlus Road Chief Founder & CEO, joined The Final Round to discuss the luxury RV travel industry and the surge in RV inquiries the company has seen over the past few months due to COVID-19.