Tiffany & Company designs, manufactures, and retails jewelry worldwide. The company offers its products through retail sales, Internet and catalog sales, business-to-business sales, and wholesale distribution. The company was founded in 1837 and is based in New York, New York.
TIF Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Tiffany & Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Tiffany & Co ranked in the 14th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 79.5%. As for the metrics that stood out in our discounted cash flow analysis of Tiffany & Co, consider:
The company's balance sheet shows it gets 88% of its capital from equity, and 12% of its capital from debt. Its equity weight surpasses that of 87.1% of free cash flow generating stocks in the Consumer Cyclical sector.
The business' balance sheet reveals debt to be 12% of the company's capital (with equity being the remaining amount). Approximately merely 24.04% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
TIF's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 42.61% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
GOOS, JILL, WBC, BBW, and WWE can be thought of as valuation peers to TIF, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.