Turning Point Brands, Inc., through its subsidiaries, manufactures and markets smokeless and smoking tobacco products in the United States. The company operates in three segments: Smokeless Products; Smoking Products; and New Generation Products. The company was founded in 2004 and is based in Louisville, Kentucky.
TPB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for TPB, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Turning Point Brands Inc ranked in the 26th 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 Turning Point Brands Inc, consider:
Turning Point Brands Inc's weighted average cost of capital (WACC) is 10%; for context, that number is higher than 67.71% of tickers in our DCF set.
As a business, Turning Point Brands Inc experienced a tax rate of about 5% over the past twelve months; relative to its sector (Consumer Defensive), this tax rate is higher than only 22.42% 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 Turning Point Brands Inc? See HRL, AGFS, EPC, K, and LWAY.
Introduction One of the first articles I wrote was about the budding cannabis market in the United States. The thesis of the original article was that Turning Point Brands (TPB) would see growth within the Zig-Zag brand, which I consider to be a marijuana adjacent product. The article explored the...
Andrew Cournoyer on Seeking Alpha | September 23, 2020
Turning Point Brands ([[TPB]] -0.0%) submitted to the U.S. Food and Drug Administration Premarket Tobacco Applications covering 250 products.The filings provide detailed scientific data to demonstrate that the products are “appropriate for the protection of public health,” as required by law.This is an important and necessary step for TPB to...