Wingstop franchises and operates restaurants under the Wingstop name that specialize in cooked-to-order, hand-sauced, and tossed chicken wings. The company was founded in 1994 and is based in Dallas, Texas.
WING Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for WING, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Wingstop Inc ranked in the 8th 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 WING, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 90. Notably, its equity weight is greater than 89.52% of US equities in the Consumer Cyclical sector yielding a positive free cash flow.
The business' balance sheet suggests that 10% of the company's capital is sourced from debt; this is greater than merely 21.21% of the free cash flow producing stocks we're observing.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
RSSV, MLCO, PZZA, CONN, and FOXF can be thought of as valuation peers to WING, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.