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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Vector Group Ltd. To summarize, we found that Vector Group Ltd ranked in the 36th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. 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 44. Notably, its equity weight is greater than merely 14.93% of US equities in the Consumer Defensive sector yielding a positive free cash flow.
The business' balance sheet suggests that 56% of the company's capital is sourced from debt; this is greater than 71.25% of the free cash flow producing stocks we're observing.
Vector Group Ltd's weighted average cost of capital (WACC) is 8%; for context, that number is higher than 69.88% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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