Ulta Beauty Inc. operates as a specialty retailer, providing cosmetics, fragrance, haircare, skincare, bath and body products, and salon styling tools. The company was founded in 1990 and is based in Bolingbrook, Illinois.
ULTA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ULTA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Ulta Beauty Inc ranked in the 56th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 48.33%. As for the metrics that stood out in our discounted cash flow analysis of Ulta Beauty Inc, consider:
Ulta Beauty Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 21.13% of tickers in our DCF set.
ULTA'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 only 21.13% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), Ulta Beauty Inc has a reliance on debt greater than just 22.1% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CPRI, OMC, AMTY, SCI, and HMTV can be thought of as valuation peers to ULTA, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Ulta Beauty (ULTA) says it has completed its phased reopening process.Following in the path of major retailers, Ulta Beauty will require all guests and associates to wear facial coverings when in stores.As different parts of the country manage rising COVID-19 cases, Ulta will maintain its close monitoring of government and...
BOLINGBROOK, Ill.--(BUSINESS WIRE)--Ulta Beauty, Inc. (NASDAQ: ULTA) today shared further updates to its operations as it continues to navigate the impact of COVID-19. “In navigating the fluid dynamics of COVID-19, we are keeping the safety of our guests and associates at the heart of every decision we make,” said Mary Dillon, chief executive officer. “In parallel, we are making decisions to ensure continued strength as an industry leader with an eye towards long-term growth.” As of today, Ulta