Viad Corporation provides experiential services in the exhibition and events, and travel and recreation industries in the United States, Canada, the United Kingdom, Germany, and the United Arab Emirates. It operates through three segments: Marketing & Events U.S., Marketing & Events International, and Travel & Recreation Group. The company was founded in 1914 and is based in Phoenix, Arizona.
VVI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Viad Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Viad Corp ranked in the 11th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 90%. The most interesting components of our discounted cash flow analysis for Viad Corp ended up being:
Interest coverage, a measure of earnings relative to interest payments, is -2.43 -- which is good for besting merely 11.9% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
Its compound free cash flow growth rate, as measured over the past 5.62 years, is -0.1% -- higher than only 16.92% of stocks in our DCF forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as VVI, try ADSW, FLOW, FLR, JCI, and KNX.
My Covid Thoughts I will begin by briefly opining on Covid, because ultimately at these valuations, it is the only bear case for Viad Corp. (VVI). Generally, I try to avoid this discussion, but with VVI, we are walking directly into the eye of the storm, so alas it must...
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 […]