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Yahoo
18 hours ago
- Business
- Yahoo
Why Bath & Body Works, Inc. (BBWI) Crashed On Monday
We recently published a list of . In this article, we are going to take a look at where Bath & Body Works, Inc. (NYSE:BBWI) stands against other worst performers on Monday. Bath & Body Works dropped its share prices by 4.94 percent on Monday to end at $26.73 apiece as investor sentiment was dampened by an investment firm's lower price target for the company. On Friday, Telsey Advisory Group reduced its price target for Bath & Body Works, Inc. (NYSE:BBWI) to $38 from $43 previously, but maintained it 'buy' recommendation on its stock. A female customer browsing a variety of body care products in a retail store. According to Telsey, the lower price target was based on the company's continued tariff pressure amid its exposure to the ongoing global trade war. In the first quarter of the year, Bath & Body Works, Inc. (NYSE:BBWI) grew its net income by 21 percent to $105 million from $87 million in the same period last year. Net sales inched up by 3 percent to $1.4 billion from $1.38 billion year-on-year. For the full-year period, Bath & Body Works, Inc. (NYSE:BBWI) maintained its net sales guidance of growing from 1 to 3 percent. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
2 days ago
- Business
- Reuters
Leela hotels owner Schloss drops about 7% in India debut
June 2 (Reuters) - Shares of Schloss Bangalore ( opens new tab, the owner of luxury hotel chain "The Leela", debuted 6.7% lower on Monday after its $409 million initial public offering was oversubscribed nearly five times last week. The stock listed at 406 rupees on India's National Stock Exchange, compared to its issue price of 435 rupees.
Yahoo
2 days ago
- Business
- Yahoo
Is Dätwyler Holding AG (VTX:DAE) Trading At A 42% Discount?
The projected fair value for Dätwyler Holding is CHF205 based on 2 Stage Free Cash Flow to Equity Current share price of CHF118 suggests Dätwyler Holding is potentially 42% undervalued Analyst price target for DAE is CHF150 which is 27% below our fair value estimate In this article we are going to estimate the intrinsic value of Dätwyler Holding AG (VTX:DAE) by taking the expected future cash flows and discounting them to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (CHF, Millions) CHF115.8m CHF127.8m CHF145.9m CHF164.6m CHF175.7m CHF183.3m CHF189.1m CHF193.5m CHF196.9m CHF199.6m Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x2 Analyst x2 Analyst x2 Est @ 4.33% Est @ 3.16% Est @ 2.34% Est @ 1.76% Est @ 1.36% Present Value (CHF, Millions) Discounted @ 5.6% CHF110 CHF115 CHF124 CHF132 CHF134 CHF132 CHF129 CHF125 CHF121 CHF116 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = CHF1.2b After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (0.4%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 5.6%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = CHF200m× (1 + 0.4%) ÷ (5.6%– 0.4%) = CHF3.9b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CHF3.9b÷ ( 1 + 5.6%)10= CHF2.2b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is CHF3.5b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of CHF118, the company appears quite good value at a 42% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Dätwyler Holding as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 5.6%, which is based on a levered beta of 1.195. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Dätwyler Holding Strength Debt is well covered by earnings and cashflows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Machinery market. Opportunity Annual earnings are forecast to grow faster than the Swiss market. Trading below our estimate of fair value by more than 20%. Threat Dividends are not covered by earnings. Revenue is forecast to grow slower than 20% per year. Whilst important, the DCF calculation is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. Why is the intrinsic value higher than the current share price? For Dätwyler Holding, we've compiled three fundamental aspects you should further examine: Risks: To that end, you should be aware of the 4 warning signs we've spotted with Dätwyler Holding . Future Earnings: How does DAE's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every Swiss stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Reuters
2 days ago
- Business
- Reuters
New World Development drops after company to defer coupon payments
HONG KONG, June 2 (Reuters) - Shares of New World Development ( opens new tab dropped as much as 9.8% after the Hong Kong property developer said it would defer coupon payments scheduled for June on perpetual bonds, casting further liquidity concerns for the cash-strapped firm. The shares fell to HK$4.32 ($0.5508) each, their lowest since April 9. That compared to a 1.9% fall in benchmark Hang Seng Index. (.HIS), opens new tab ($1 = 7.8428 Hong Kong dollars)
Yahoo
2 days ago
- Business
- Yahoo
Investors say they took advantage of market instability caused by Trump's tariffs
A recent survey has revealed that more than a third of millennial investors capitalised on market volatility following former US President Donald Trump's "liberation day" tariffs, buying stocks and shares. According to research from Charles Stanley Direct, 38 per cent of millennial DIY investors took advantage of the opportunity to purchase cheap stocks amidst the financial market turmoil triggered by Mr. Trump's announcement of new export tariffs. In comparison, only 16 per cent of baby boomers, aged 60 to 78, engaged in similar investment activity during the same period. DIY investors are defined as those who actively select their own investments, including assets like cryptocurrency and gold. The survey, which polled 1,000 investors, found that across all age groups, 31 per cent bought stocks during the market dip. Stock markets around the world suffered sharp drops in the days following the so-called 'liberation day' announcements on April 2. The UK's FTSE 100 saw its worst single day of trading since the start of the Covid pandemic, while European, US and Asian indexes also took a battering. The US's S&P 500, which tracks the country's biggest listed firms, lost about five trillion dollars (£3.7 trillion) in value over a two-day record run of losses. However, most indexes, including the FTSE and the S&P, have since recovered the losses as the US has struck new trade deals with countries including the UK and China. Mr Trump is also facing roadblocks to his trade policies from the US courts. On Thursday, a federal appeals court said it was allowing Mr Trump to continue collecting import taxes for now, a day after a lower court blocked the duties. Rob Morgan, chief investment analyst at Charles Stanley Direct, said: 'The fallout following the imposition of universal tariffs in early April was widespread, and especially alarming for investors as markets plummeted and carefully curated portfolios were blown off course. 'However, a large cohort of DIY investors were not simply looking to sell up or ride out the wave, but saw the market turmoil as an opportunity to seek discounts and reposition their investments.' Meanwhile, other, more risk-averse investors flocked to so-called 'safe haven' assets during the stock market turbulence. About a fifth bought alternative assets, such as gold, the survey showed. The precious metal hit its highest price in April, hitting about 3,500 US dollars (£2,600) per ounce, but has eased back slightly since. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
