Wyndham Worldwide Corporation provides hospitality services and products to individual consumers and business customers worldwide under the Wyndham Hotels and Resorts, Ramada, Days Inn, Super 8, Howard Johnson, Wingate by Wyndham, Microtel Inns & Suites, Tryp by Wyndham, RCI, Landal GreenParks, Novasol, Hoseasons, cottages4you, James Villa Holidays, Wyndham Vacation Rentals, Wyndham Vacation Resorts, Shell Vacations Club, and WorldMark by Wyndham brand names. The company was founded in 2006 and is based in Parsippany, New Jersey.
WH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for WH, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Wyndham Hotels & Resorts Inc ranked in the 8th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 92.17%. As for the metrics that stood out in our discounted cash flow analysis of Wyndham Hotels & Resorts Inc, consider:
The company's compound free cash flow growth rate over the past 2.36 years comes in at -0.16%; that's greater than merely 10.12% of US stocks we're applying DCF forecasting to.
Wyndham Hotels & Resorts Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 11. This value is greater than 64.21% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WH, try BLMN, VRA, APTV, BSET, and CBRL.
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Wyndham Hotels & Resorts, Inc. (NYSE: WH) announced today its Board of Directors declared a quarterly cash dividend of $0.08 per share on its common stock, payable September 30, 2020 to shareholders of record as of September 15, 2020.
PARSIPPANY, N.J., Aug. 10, 2020 /PRNewswire/ -- Wyndham Hotels & Resorts, Inc. (NYSE: WH) announced today the pricing of its offering of $500 million aggregate principal amount of 4.375% Senior Notes due 2028 (the "Notes"), which represents a $150 million increase from the previously…