Big 5 Sporting Goods Corp (NASDAQ:BGFV)

CAPS Rating: 2 out of 5

The Company is a sporting goods retailer, which provides a full line of products that includes athletic shoes, apparel and accessories, and outdoor and athletic equipment for sports.

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Player Avatar PJR02 (67.21) Submitted: 8/17/2010 10:49:29 AM : Outperform Start Price: $11.69 BGFV Score: -66.45

Doing a discounted cash flow valuation, with growth varying over 2-4% over the next 10 years (which is just shy of past and expected store growth), along a higher discount rate (10-12%), I forecast anywhere from $18-30, with the company keeping dividends under 10% of free cash flow (however, I think dividend increases, if cash flow significantly improves, will be possible, but at least 3 or 4 years from now)

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