Photo by: Hans Isaacson
“Should You Buy the YETI Stock?”. I will answer this question by using 2 valuation methods to determine a YETI Stock Forecast.
Yeti holdings, inc. (NYSE: YETI) is one of the most well-known brands within the Leisure industry. This analysis will contain a YETI stock price predictions as well as the reasoning/approach behind my YETI stock forecast.
YETI Stock Forecast is $61.68 Per Share
My Yeti holdings, inc.’s stock price prediction of $61.68 was the result of 2 valuation methods (which are averaged for a final price target). I’ll dive into the approach to show you how I determined a stock price of $61.68 for the YETI stock.
- YETI Financial Growth Metrics
- YETI Comparable Companies Analysis
Using EPS and P/E Ratios to Determine a YETI Stock Forecast for 2023
YETI’s forward EPS for 2023 is estimated to be $3.48. Furthermore, YETI’s forward P/E Ratio for 2023 is expected to be 16.52. By having both YETI’s forward P/E and EPS, we can multiply them together to achieve a YETI stock forecast of $57.49 per share
There are other ways to value the YETI stock but I would argue that using a combination of forward p/e and eps is commonly used by analysts and investors, which is why I used them to forecast YETI’s stock price.
YETI Stock Forecast Via Comparable Analysis
Who are YETI’s Competitors?
To undergo a comparable analysis, we need to outline YETI’s main competitors, which need to have; a stock, valid financial ratios, operations similar to YETI, and a market cap similar to YETI (if possible).
Using this criterion, I found YETI’s closest competitors to be:
SKX, HBI, TPX, LEG, DKS, HOG, BYD, THO, VAC, and MNSO
Undergoing a Comparable Analysis to Achieve a YETI Price Forecast
YETI’s D/E ratio is 1.17, compared to the average D/E ratio of YETI’s peers being 2.74. This implies that YETI is undervalued and its share price should change by a factor of 133.75% to be at fair value (based on YETI’s D/E compared to the D/E of its peers).
YETI’s current PEG ratio is 0.56, compared to the average PEG ratio of YETI’s peers being 0.05. This implies that YETI is overvalued and its share price should change by a factor of -91.37% to be at fair value (based on YETI’s PEG compared to the PEG of its peers).
Overall, YETI’s stock appears to be undervalued and to be at its fair value it needs to increase by (an average of) 21.19%. Applying this percentage change to YETI’s current price of $54.36 implies a forecasted price of $65.88.
Do the YETI Analyst Ratings Confirm My Conclusion?
Analyst Ratings are not the end all be all, however, they can provide us with a proxy for YETI’s overall stock sentiment. There are a total of 34 analyst ratings for YETI, which are distributed as follows:
25 Buys
9 Holds
0 Sells
73.53% of analysts have given the YETI stock a ‘buy” rating, this means that there is an overall bullish sentiment, with analyst “buy” ratings forming a majority of total ratings given.
Concluding Thoughts on my YETI Stock Forecast
Based on the overall YETI stock forecast of $61.68 per share (derived from P/E & EPS, and comparable valuations), the current price of YETI is $54.36, and the overall bullish analyst sentiment for the YETI stock, I would agree with the analysts and say YETI is a buy.
Let me know what you think, happy to dive into other aspects of YETI to help you make an informed investment decision.
Originally published at https://utradea.com.
