Tractor Supply Co's market capitalization of $16,005,521,210 is ahead of 89.5% of US-listed equities.
The capital turnover (annual revenue relative to shareholder's equity) for TSCO is 6.27 -- better than 92.98% of US stocks.
TSCO's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 476.05 -- higher than 92.37% of US-listed equities with positive expected earnings growth.
Stocks with similar financial metrics, market capitalization, and price volatility to Tractor Supply Co are GPC, GWW, JBHT, IT, and ULTA.
Tractor Supply Company focuses on supplying the lifestyle needs of recreational farmers, tradesmen and small businesses. The company offers a portfolio of products, which include equine, livestock, pet and small animal products, hardware, truck, towing and tool products, seasonal products, including lawn and garden items, power equipment, gifts and toys, work/recreational clothing and footwear, and maintenance products for agricultural and rural use. The company was founded in 1938 and is based in Brentwood, Tennessee.
TSCO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for TSCO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Tractor Supply Co ranked in the 52th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 18.5% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Tractor Supply Co, consider:
TSCO'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 27.18% of tickers in our DCF set.
Tractor Supply Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 37.69. This coverage rate is greater than that of 92.33% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Consumer Cyclical), Tractor Supply Co has a reliance on debt greater than merely 18.08% of them.
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 Tractor Supply Co? See CVCO, CSV, BTN, ESCA, and ICON.
In this episode of Industry Focus: Consumer Goods, Emily Flippen and Motley Fool contributor Dan Kline take a deep dive into a high-performing yet underrated retail brand. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. This week, I'm joined by Motley Fool contributor Dan Kline as we take a deep dive into one of the most, in my opinion, underrated retail winners of the past decade: Tractor Supply Company (NASDAQ: TSCO).
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