Vista Outdoor is a leading global designer, manufacturer and marketer in the growing outdoor sports and recreation markets. The company operates in two segments, Shooting Sports and Outdoor Products. The company was incorporated in 2014 and is based in Clearfield, Utah.
VSTO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for VSTO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Vista Outdoor Inc ranked in the 44th percentile in terms of potential gain offered. In terms of the factors that were most noteworthy in this DCF analysis for VSTO, they are:
Vista Outdoor Inc's weighted average cost of capital (WACC) is 11%; for context, that number is higher than 77.76% of tickers in our DCF set.
Vista Outdoor Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -2.33. This coverage rate is greater than that of merely 16.35% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than 63.81% of stocks in its sector (Consumer Cyclical).
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 VSTO, try ULTA, CAL, IHG, WOW, and NDLS.
Vista Outdoor ([[VSTO]] +6.1%) rose to its 52-week high level on Aug 14 after beating analyst estimates in its earnings on Aug 6; stock price performance of past 6-months stands at 227%.B.Riley upgraded Vista Outdoor to Buy from Neutral and also raised its price target to $30 from $23, indicating 54.2%...
Vista Outdoor Inc. (VSTO) designs, manufactures, and distributes sports and recreation goods primarily in the United States. The company specializes in shooting equipment including market-leading firearms ammunition. Still, the brand portfolio is diversified across everything from action sports helmets, eyewear, golf accessories, to outdoor cooking supplies. Vista recently reported its...
BOOX Research on Seeking Alpha | September 8, 2020
Vista Outdoor Inc. ("Vista Outdoor") (NYSE: VSTO) will host its investor conference call on first quarter fiscal year 2021 financial results on Thursday, Aug. 6 at 9:00 a.m. ET. In addition to the results, the company expects to discuss its outlook and financial guidance and may discuss matters of strategy during the call. Access the call on Vista Outdoor's website: http://investors.vistaoutdoor.com/event