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 79th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Vector Group Ltd ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 50. Notably, its equity weight is greater than only 18.68% of US equities in the Consumer Defensive sector yielding a positive free cash flow.
The company's compound free cash flow growth rate over the past 5.44 years comes in at 0.3%; that's greater than 69.35% of US stocks we're applying DCF forecasting to.
The business' balance sheet reveals debt to be 50% of the company's capital (with equity being the remaining amount). Approximately 72.47% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
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 BTI, UNFI, BBXIA, LAUR, and BRFS.
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 […]