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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Waddell & Reed Financial Inc. To summarize, we found that Waddell & Reed Financial Inc ranked in the 39th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for WDR, they are:
The company's compound free cash flow growth rate over the past 5.75 years comes in at -0.12%; that's greater than only 12.91% of US stocks we're applying DCF forecasting to.
WDR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 38.43% of tickers in our DCF set.
Relative to other stocks in its sector (Financial Services), Waddell & Reed Financial Inc has a reliance on debt greater than just 18.73% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
GDOT, LNC, AON, ICE, and SEIC can be thought of as valuation peers to WDR, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
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...