Waddell & Reed Financial provides investment management and advisory, investment product underwriting and distribution, and shareholder services administration to mutual funds, and institutional and separately managed accounts in the United States. The company was founded in 1937 and is based in Overland Park, Kansas.
WDR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for WDR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Waddell & Reed Financial Inc ranked in the 42th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 22.5%. As for the metrics that stood out in our discounted cash flow analysis of Waddell & Reed Financial Inc, consider:
The company's compound free cash flow growth rate over the past 5.68 years comes in at -0.1%; that's greater than only 13.69% of US stocks we're applying DCF forecasting to.
The business' balance sheet reveals debt to be 8% of the company's capital (with equity being the remaining amount). Approximately merely 21.64% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 0% of stocks in its sector (Financial Services).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WDR, try PZN, AON, EV, ICCH, and RLI.
Waddell & Reed Financial (WDR) preliminary assets under management of $70.3B at Aug. 31, 2020 increased from $67.8B at July 31, 2020, with market gains adding $3.06B to AUM. Net outflows during the month were $580M. Retail AUM rose to $66.98B from $64.64B, while institutional AUM increased to $3.32B from...
Upgrades * For Waddell & Reed Financial Inc (NYSE: WDR), Citigroup upgraded the previous rating of Sell to the current rating Neutral. For the second quarter, Waddell & Reed Financial had an EPS of $0.38, compared to year-ago quarter EPS of $0.45. At the moment, the stock has a 52-week-high of $18.33 and a 52-week-low of $9.87. Waddell & Reed Financial closed at $14.84 at the end of the last trading period. * Citigroup upgraded the previous rating for American Eagle Outfitters Inc (NYSE: AEO) from Neutral to Buy. In the first quarter, American Eagle Outfitters showed an EPS of ($0.84), compared to $0.24 from the year-ago quarter. The stock has a 52-week-high of $18.07 and a 52-week-low of $6.54. At the end of the last trading period, American Eagle Outfitters closed at $10.65. * For...
The insurance-technology company Majesco’s $594 million sale to Thoma Bravo earlier this week got Barron’s wondering: What other financial-services companies might be in play? For example, Orion Advisor Solutions agreed to merge with Brinker Capital in June. Genstar Capital is investing in the deal.