Wolverine World Wide Inc. designs, manufactures, sources, markets, licenses, and distributes footwear, apparel, and accessories. The company operates through Lifestyle Group, Performance Group, and Heritage Group segments. It offers casual footwear and apparel; performance outdoor and athletic footwear and apparel; childrens footwear; industrial work boots and apparel; and uniform shoes and boots. The company was founded in 1883 and is based in Rockford, Michigan.
WWW Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Wolverine World Wide Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Wolverine World Wide Inc ranked in the 61th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 145.17%. As for the metrics that stood out in our discounted cash flow analysis of Wolverine World Wide Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 5.85; that's higher than 58.17% of US stocks in the Consumer Cyclical sector that have positive free cash flow.
The business' balance sheet suggests that 45% of the company's capital is sourced from debt; this is greater than 62.43% of the free cash flow producing stocks we're observing.
Wolverine World Wide Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 9.96% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FLWS, M, WHR, CLUB, and ETH can be thought of as valuation peers to WWW, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.