VF Corporation designs, manufactures, markets, and distributes branded lifestyle apparel, footwear, and accessories in the United States and Europe. The company was founded in 1899 and is based in Greensboro, North Carolina.
VFC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for VFC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that V F Corp ranked in the 12th 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. The most interesting components of our discounted cash flow analysis for V F Corp ended up being:
Its compound free cash flow growth rate, as measured over the past 5.81 years, is -0.12% -- higher than only 15.26% of stocks in our DCF forecasting set.
VFC'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 29.23% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), V F Corp has a reliance on debt greater than just 18.78% 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 VFC, try CHDN, CHUY, ELA, JILL, and NWSA.
VF Corporation (NYSE: VFC) might soon take a double-digit hit to its stock price, if a recent analyst prognostication comes true. On Monday, Deutsche Bank's Paul Trussell lowered his price target on the stock, to $49 per share, while maintaining his hold recommendation on the stock. Like many consumer goods companies trying to maintain their businesses during the SARS-CoV-2 coronavirus outbreak, VF had fallen out of favor somewhat with investors.