Vector Group Ltd. manufactures and sells cigarettes and electronic cigarettes in the United States. The company also provides residential brokerage services through a subsidiary. The company was founded in 1911 and is based in Miami, Florida.
VGR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for VGR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Vector Group Ltd ranked in the 68th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 156%. As for the metrics that stood out in our discounted cash flow analysis of Vector Group Ltd, consider:
52% of the company's capital comes from equity, which is greater than just 25% of stocks in our cash flow based forecasting set.
The business' balance sheet suggests that 48% of the company's capital is sourced from debt; this is greater than 74.96% of the free cash flow producing stocks we're observing.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than 67.73% of stocks in its sector (Consumer Defensive).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as VGR, try AGRO, TSN, TAP, SJM, and OLLI.
Vector Group Ltd. (VGR) owns a company that produces and sells different brands of cigarettes and runs the fourth-largest residential brokerage firm in the United States. Vector also owns New Valley, which is a company that participates in real estate investments in New York City. The stock is down 21.58%...
Ophelia Research on Seeking Alpha | September 17, 2020
Vector Group Ltd. (NYSE: VGR) (the "Company") today announced that it has appointed veteran industry operations and technology leader David Ballard as Senior Vice President, Enterprise Efficiency and Chief Technology Officer. In this newly-created role, Mr. Ballard will be responsible for seeking out new technologies and operational efficiencies for the Company and its subsidiaries. Mr. Ballard has served as a consultant to the Company since February 2020.
We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. In this article, we look at what those funds think […]