Marriott Vacations Worldwide Corporation (VAC) Company Bio
Marriott Vacations Worldwide is a developer, marketer, seller and manager of vacation ownership and related products under the Marriott Vacation Club and Grand Residences by Marriott brands. The Company is a developer, marketer and seller of vacation ownership and related products under The Ritz-Carlton Destination Club brand, and develops, markets and sells residential products under The Ritz-Carlton Residences brand. The company was established in 2011 and is based in Orlando, Florida.
VAC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for MARRIOTT VACATIONS WORLDWIDE Corp. To summarize, we found that MARRIOTT VACATIONS WORLDWIDE Corp ranked in the 19th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 74.67%. As for the metrics that stood out in our discounted cash flow analysis of MARRIOTT VACATIONS WORLDWIDE Corp, consider:
MARRIOTT VACATIONS WORLDWIDE Corp's effective tax rate, as measured by taxes paid relative to net income, is at 43 -- greater than 93.6% of US stocks with positive free cash flow.
MARRIOTT VACATIONS WORLDWIDE Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.54. This coverage rate is greater than that of merely 23.09% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 13. This value is greater than 77.12% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BBW, CARS, MCFT, BJRI, and EAT can be thought of as valuation peers to VAC, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Marriott Vacations Worldwide (VAC) discloses a workforce reduction plan that is expected to affect ~3,300 jobs by mid-November or later, as part of its response to the effects of the COVID-19 pandemic on business operations."While occupancies have rebounded to some extent in many of our drive-to resort destinations, they remain...
Reporting its Q2 2020 financial results yesterday, Marriott Vacations Worldwide (NYSE: VAC) revealed earnings well below analyst predictions, but the company still generated more revenues than expected as it navigated the travel and occupancy impact of COVID-19. Marriott Vacations says it is in the process of reopening, though approximately 40% of its workforce remains on furlough to reduce costs. CEO Stephen Weisz says the company saw very fast recovery once COVID-19 health restrictions were lifted, noting "Beginning in late May, we saw our resort occupancies quickly build in states where restrictions had been lifted, illustrating the resilience of our customers and our leisure-focused business model."
ORLANDO, Fla., July 22, 2020 /PRNewswire/ -- Marriott Vacations Worldwide Corporation (NYSE: VAC) announced today the completion of its first timeshare receivable securitization of 2020, offered pursuant to Rule 144A and outside the United States in accordance with Regulation S under the…
ORLANDO, Fla., July 20, 2020 /PRNewswire/ -- Marriott Vacations Worldwide (NYSE: VAC) — a global industry leader in vacation ownership — announced the implementation of a comprehensive, enhanced cleaning protocol program entitled "Next Level of Clean". Recognized as a global vacation…
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