EZPW Price Target at $16.91 with some upside
- 7 Comment
As I continue to hold EZPW in my portfolio with positive alpha, I want to set a price target for the stock to help me identify when the position should be closed. Using the value scorecard as a start, I use a discounted cash flow (DCF) analysis with sensitivity charts to help set my price target.
For EZPW, I have calculated a price target of $16.91 per share. Some of the major assumption to get to this price per share are a 5% free cash flow growth rate over the next five years with a 0% terminal value. The cash flows are discounted with a WACC of 7.7%
To see my full set of assumptions and resulting analysis, see the document below:
Looking at the sensitivity chart, these shares can easily get into the $20 per share with some slight increases on both growth rates…
As new financial results are provided, I will update my price target accordingly.
Author Disclosure: I currently own shares of EZPW at the time of this posting.
7 Comments on this post
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House Design Sydney said:
It is just a wild guess. Nothing more. Many times it is an overly optimistic hope more than anything else.
November 24th, 2009 at 1:34 am -
vitamins said:
Nice post.
November 25th, 2009 at 5:23 am -
carp fishing said:
That is really a great suggest with have a nice info.It is really a thought on this topic.I am very glad to watch this info…..
December 1st, 2009 at 6:20 am -
Sensual photography said:
Take your real estate classes but also take a basic accounting course, real estate law, any finance course and a course in public speaking. Don’t laugh, you will use all those courses through your career.
December 1st, 2009 at 8:25 am -
House Design Sydney said:
“target price” is a highly reliable indicator whether a stock analyst will either keep his job in the next six months, or get a bonus at year’s end. if the target price is reached, then the analyst gets to keep his job and most likely to get a bonus. if the stock fails to reach target price, that is one strike against the analyst.
December 2nd, 2009 at 5:28 am -
nintendo r4ds said:
Reliance Natural can be purchased at its current price with a target of Rs 250. I have 50K stocks of it and will not sell before it reaches 250. It is the best stock to own at its current price.
December 4th, 2009 at 4:10 am -
Corporate Security services said:
How do I create a pretend portfolio for the stock market with out real money?
February 7th, 2010 at 12:24 pm
