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:
We started the process of determining a valid price forecast for Ulta Beauty Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Ulta Beauty Inc ranked in the 38th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for ULTA, they are:
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 25.31% of tickers in our DCF set.
Ulta Beauty Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 94.66. This coverage rate is greater than that of 95.6% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Consumer Cyclical), Ulta Beauty Inc has a reliance on debt greater than only 20.67% 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 ULTA, try PENN, ELY, GHG, ICON, and RELX.
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(Image source) I’ve been a fan of all-things-beauty retailer Ulta Beauty (ULTA) for a long time. That doesn’t mean I’ve always been a fan of the stock, however, as the past several years have produced some truly eye-popping valuations when Ulta is hot. However, this year, the stock has been...
There’s no such thing as having too many beauty products. And now you can max out your collection during Ulta’s annual Fall Haul event. The sale is taking up to 20% off all of your favorite beauty brands. So you’ll have no problem upgrading your skincare, hair care, or makeup routine. You’ll find brushes, bronzers,…
Filed under: Lifestyle , Beauty , Hair Our team is dedicated to finding and telling you more about the products and deals we love. If you love them too and decide to purchase through the links below, we may receive a commission. Pricing and availability are subject to change. The first time I heard about It’s A 10’s Miracle Leave-in Product , I have to admit, I thought it was a complete marketing ploy. You’re telling me that one leave-in conditioner could do 10 entirely different things for my hair? All at an affordable price point? Yeah, right. Shop: It’s A 10 Miracle Leave-In Product , $18.99 Credit: Ulta Repairs dry damaged hair Adds shine Smoothes and controls frizz Seals and protects hair color Detangles Prevents split ends Stops hair breakage Creates silkiness Enhances natural bod...