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 5th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Tiffany & Co, consider:
Its compound free cash flow growth rate, as measured over the past 5.23 years, is -0.22% -- higher than only 8.7% of stocks in our DCF forecasting set.
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 29.91% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), Tiffany & Co has a reliance on debt greater than merely 14.88% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as TIF, try EVC, HIBB, PLAY, ADNT, and APEX.
We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. We are almost done with the second quarter. Investors decided […]
Tiffany (TIF) is on watch after Dealreporter reports that the European Commission's notification on the company's merger with LVMH (LVMHF) isn't likely to come until late August or early September. Shares of Tiffany are flat in AH trading at $122.23 vs. the deal price of $135....
Thesis Jewelry can be a tricky business. It can be even trickier when there’s a buyout on the table, but the pandemic has thrown the deal into question. So, on top of the jewelry business itself comes uncertainty about what happens to the business after the pandemic and the merger....
Financial Freedom Institute on Seeking Alpha | June 29, 2020