Wayfair engages in an e-commerce business in the United States, offering a range of furniture, home furnishings, decor and goods. The company was founded in 2002 and is based in Boston, Massachusetts.
W 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 Wayfair Inc. To summarize, we found that Wayfair Inc ranked in the 34th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 37.67%. In terms of the factors that were most noteworthy in this DCF analysis for W, they are:
The business' balance sheet suggests that 7% of the company's capital is sourced from debt; this is greater than merely 18.62% of the free cash flow producing stocks we're observing.
Wayfair Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -6.09. This coverage rate is greater than that of just 10.54% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Wayfair Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Technology), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as W, try APH, VSH, IEC, NVDA, and STM.