Under Armour develops, markets, and distributes branded performance apparel, footwear, and accessories for men, women, and youth primarily in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. The company was founded in 1996 and is based in Baltimore, Maryland.
UAA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for UAA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Under Armour Inc ranked in the 9th 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. In terms of the factors that were most noteworthy in this DCF analysis for UAA, they are:
The company's balance sheet shows it gets 80% of its capital from equity, and 20% of its capital from debt. Notably, its equity weight is greater than 66.5% of US equities in the Consumer Cyclical sector yielding a positive free cash flow.
Under Armour Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Under Armour Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -17.5. This coverage rate is greater than that of only 5.94% of stocks we're observing for the purpose of forecasting via discounted cash flows.
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 Under Armour Inc? See MTN, AEO, APTV, BLL, and BLMN.
Fitness app market is expected to witness market growth at a rate of 21.30% in the forecast period of 2020 to 2027. Data Bridge Market Research report on fitness app market provides analysis and insights regarding the various factors expected
Get back on track and grab some new workout gear, too, during Under Armour’s semi-annual sale. Starting Wednesday, Jan. 13, take up to 40% off items in the UA Outlet section of the site, ranging from running shoes to track pants, hoodies to athletic face masks. No code is needed to cash in on the…