Fair Value - Sept 2430 Dec 2024 10:53
JD Sports Fashion (LSE:JD.)
Overview: JD Sports Fashion Plc is a retailer of branded sports fashion and outdoor clothing, footwear, accessories, and equipment for all ages across the UK, Ireland, Europe, North America, and internationally with a market cap of £7.04 billion.
Operations: The company's revenue segments include £9.98 billion from Sports Fashion and £559.90 million from Outdoor products.
Estimated Discount To Fair Value: 41.4%
JD Sports Fashion is trading at £1.36, significantly below its estimated fair value of £2.32, indicating it may be undervalued based on cash flows. Despite recent guidance suggesting revenue will be in the lower half of the expected range for 2024 due to currency headwinds, JD's earnings are forecast to grow at 15.87% per year, outpacing the UK market average. The company also boasts a high return on equity forecast of 23.2% in three years’ time.