* Note: Prices are in Million (M) USD.
Description:
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $227 M
Debt : $973 M
EBITDA : $575 M
Net Debt (Debt - Cash): $746 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: TRADE & SERVICES
Industry: RETAIL-WOMEN'S CLOTHING STORES
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 11.26
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $329 M
Average Revenue: $6,652 M
Revenue Converted To Free Cash FLow(%): 5%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 101.38%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-01-31): $6,230 M
Revenue 4 Years Ago (2021-01-31): $5,413 M
Last 5 Years Average Revenue Growth: 3%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-01-31): $81 M
Share Count 5 Years Ago (2021-01-31): $92 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.99
Trailing 12-Month Earnings Per Share (EPS): $1.86
Average Earnings Per Share (EPS): $1.93
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 53%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $22
52-Week Low: $14
Threshold Price (15% Above 52-Week Low): $16
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,596 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 21 points to above Victoria's Secret & Co (VSCO) stock.
Last 4 Years Avg PE (Limited to last 4 years of EPS data) 9, Fair Value PE 15, Industry Based PE is 18 and Growth based PE is 10. Based on these all values average assigned is 13.00.
Value-Trades has assined P/E value 13.00. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.925.
The fair value of Victoria's Secret & Co (VSCO) stock should be (13.00 x $1.925) = $25.03
