As part of a new series, each week we typically conduct a DCF on one of the companies in our screens. This week we thought we’d take a look at one of the stocks that is not currently in our screens, The Home Depot, Inc. ().  ProfileThe Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows. In addition, it provides tool and equipment rental services.  Recent PerformanceOver the past twelve months the share price is up 15.08%.Source: Google FinanceInputs Discount Rate: 8% Terminal Growth Rate: 3% WACC: 8% Forecasted Free Cash Flows (FCFs) Year FCF (billions) PV(billions) 2024 16.63 15.40 2025 18.36 15.74 2026 19.98 15.86 2027 21.75 15.99 2028 23.67 16.11 Terminal ValueTerminal Value = FCF * (1 + g) / (r – g) = 487.60 billionPresent Value of Terminal ValuePV of Terminal Value = Terminal Value / (1 + WACC)^5 = 331.85 billionPresent Value of Free Cash FlowsPresent Value of FCFs = ∑ (FCF / (1 + r)^n) = 79.10 billionEnterprise ValueEnterprise Value = Present Value of FCFs + Present Value of Terminal Value = 410.95 billionNet DebtNet Debt = Total Debt – Total Cash = 48.48 billionEquity ValueEquity Value = Enterprise Value – Net Debt = 362.47 billionPer-Share DCF ValuePer-Share DCF Value […]

Image Source:   Linked here is a detailed quantitative analysis of  (). Below are some highlights from the above linked analysis:Company Description: Southern Company is an Atlanta-based energy holding company and is one of the largest producers of electricity in the U.S. In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:1. Avg. High Yield Price 2. 20-Year DCF Price 3. Avg. P/E Price 4. Graham NumberSO is trading at a discount to only 3.) above. When also considering the NPV MMA Differential, the stock is trading at a 63.9% premium to its calculated fair value of $51.19. SO did not earn any Stars in this section. In this section, there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:1. Free Cash Flow Payout 2. Debt To Total Capital 3. Key Metrics 4. Dividend Growth Rate 5. Years of Div. Growth 6. Rolling 4-yr Div. > 15%SO earned one Star in this section for 3.) above. SO earned a Star for having an acceptable score in at least two of the four Key Metrics measured. The company has paid a cash dividend to shareholders every year since 1948 and has increased its dividend payments for 23 consecutive years. Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market […]

We kickoff the day with Export Sales at 7:30 A.M., S&P Global Composite PMI Flash, S&P Global Manufacturing PMI Flash, and S&P Global Services PMI Flash at 8:45 A.M., Existing Home Sales, Existing Home Sales MoM, Michigan Consumer Sentiment Final, Michigan 5 Year Inflation Expectations Final, Michigan Consumer Expectations Final, Michigan Current Conditions Final, and Michigan Inflation Expectations Final at 9:00 A.M., Kansas Fed Composite Index and Kansas Fed Manufacturing Index at 10:00 A.M., Baker Hughe Oil & Total Rig Count at 12:00 P.M., Cattle on Feed, Cold Storage, and Milk Production at 2:00 P.M.While retail meat prices at or near record highs over the last year, retail egg prices have been climbing and are likely to keep rising in the coming months. Wholesale and retail egg prices soared in 2022 in a mix of inflationary pressures and flock liquidation due to the bird flu. Wholesale prices peaked at $5.00/dozen, and the national average retail prices stopped just below $5.00. Following a correction in 2023, the national average retail price bottomed at $2.00 and trended higher throughout 2024. Wholesale prices have become increasingly volatile and reached a record price last week at $6.23/dozen.CBOT corn open interest and large speculative positions are nearing records, which makes the market vulnerable. US and world farmers have correctly rewarded the rally with cash sales. The speed of Brazilian soybean harvest and planting of the winter corn crop will accelerate into February. Private estimates show that the Brazilian soybean crop at record levels of 171-176 […]

President Trump took down the global elites at Davos and oil prices at the same time. The President put OPEC and on oil on notice when he said he was going to ask Saudi Arabia and OPEC to bring down the cost of oil but at the same time fed into the animal spirits of global bankers by signaling a new golden age to invest in America. President Trump started the talk about removing some of the ridiculous regulations that Biden put into place and reducing the cost of doing business with major tax cuts and fast-tracking projects. And the President realizes it’s going to come back down to American energy and American energy dominance.Trump said, “I declared a national energy emergency—and it’s so important, a national energy emergency—to unlock the liquid gold under our feet and pave the way for rapid approvals of new energy infrastructure. The United States has the largest amount of oil and gas of any country on Earth, and we’re going to use it. Not only will this reduce the cost of virtually all goods and services, but it will also make the United States a manufacturing superpower and the world capital of artificial intelligence and crypto.”Trump signaled to the business leaders of the world and the bankers that if they don’t get on board they are going to be left out. Trump said, “My message to every business in the world is very simple: Come make your product in America, and we will give you […]

From a data perspective, recent labour market indicators have generally remained strong in Hungary. However, there are some nuances that warrant caution before we get too excited about the strength of the country’s labour statistics.Recent data releases on the Hungarian labour market paint an encouraging but mixed picture. The trend in employment and unemployment over the past year shows a cooling of the Hungarian labour market, which still provides a positive overall picture. But the trend itself could be exploited by companies in their wage decisions. At the beginning of 2025, companies could be faced with a still sluggish economic environment and a sense of a softening labour market. As a result, they may be reluctant to grant strong wage increases – so what we saw in 2024 may not be repeated in 2025, and wage dynamics will not be as strong. 4.4% Unemployment rate (Oct-Dec) ING Forecast 4.8% / Previous 4.6% Lower than expected  Positive surprise on the Hungarian labour marketThe latest labour market statistics from the Hungarian Central Statistical Office (HCSO) came as a big positive surprise, with the model estimate for December 2024 showing a decline in the unemployment rate to 4.3%. Meanwhile, the official data (the survey-based three-month moving average) also moved in a positive direction, with the indicator standing at 4.4% for the fourth quarter.In terms of the unemployment numbers, the two statistics put the size of the group at around 210-216,000. The detailed data shows that in December, with a slight decrease in the […]

After opening the day higher, the Indian benchmark turned negative as the session progressed and ended the day lower.Benchmark equity indices, BSE Sensex and NSE Nifty50, ended the week’s last trading session on a lower note.At the closing bell, the BSE Sensex closed lower by 330 points (down 0.4%).Meanwhile, the NSE Nifty closed 114 points lower (down 0.5%).HUL, Britannia Industries, and Eicher Motors are mong the top gainers today.Trent, BPCL, and Cipla on the other hand, were among the top losers today.The GIFT Nifty was trading at 23,114, down by 142 points at the time of writing.The BSE MidCap index ended 1.6% lower and the BSE SmallCap index ended 2.2% lower.Sectoral indices were trading mixed on Thursday with stocks in the FMCG sector and the media sector witnessing buying. Meanwhile, the stocks inthe  auto sector and oil & gas sector witnessing selling pressure.The rupee is trading at 86.21 against the US$.Gold prices for the latest contract on MCX are trading 0.4% higher at Rs 79,958 per 10 grams.Meanwhile, silver prices were trading 0.8% higher at Rs 91,892 per 1 kg.  KFin Tech Shares Soars. Here’s Why.Shares of KFin Tech surged by more than 8% on 24 January 2025, following the release of its Q3FY25 results. This marks a strong rebound after a month-long downtrend that saw the stock drop by nearly 20% from its 2024 highs.The company expressed confidence in maintaining a growth rate of over 30%, with an increase in retail participation bolstering its business and assets under management (AUM).KFin Tech reported a revenue of Rs 290 crore, reflecting a 32.6% […]