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 16th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 71%. In terms of the factors that were most noteworthy in this DCF analysis for VSTO, they are:
The company's compound free cash flow growth rate over the past 4.69 years comes in at -0.1%; that's greater than only 16.77% of US stocks we're applying DCF forecasting to.
Vista Outdoor Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.5. This coverage rate is greater than that of merely 14.3% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Vista Outdoor Inc experienced a tax rate of about 6% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than just 23.47% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SEE, CARS, HOFT, SFIX, and GFASY can be thought of as valuation peers to VSTO, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.