Petco Health and Wellness Company, Inc. (WOOF) DCF Valuation
A meaningful DCF fair value isn't available for Petco Health and Wellness Company, Inc. (WOOF) — its free-cash-flow and net-debt profile makes a standard discounted-cash-flow model unreliable (common for loss-makers and high-net-debt or recently-public companies), and no analyst DCF is published. Explore your own assumptions with the editable model below.
What would today's price require?
$2.62 is justified only if free cash flow grows about +35.4% a year (fading to 2.5% long-run) at a 11.5% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 12.5% | N/A |
| Base case | 2.0%/yr | 11.5% | N/A |
| Optimistic | 5.0%/yr | 10.5% | N/A |
Current Price
$2.62
Market-Implied Growth
+35.4%/yr
vs -0.4% 5Y actual
Base-Case Model Value
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WOOF DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for WOOF (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $58.8M · 0.29B shares · net debt $1.6B
Estimated Fair Value
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These assumptions imply no positive equity value — try a higher growth or lower discount rate.
About Petco Health and Wellness Company, Inc.
Petco Health and Wellness Company, Inc. operates as an enterprise focused on enhancing the well-being of companion animals, their human guardians, and its own associates. The company offers a broad spectrum of services, including veterinary care (provided both in-store and through its Vetco mobile clinics), grooming, pet training, telehealth consultations, and specialized offerings like Vital Care and pet health insurance. Customers can also procure various pet consumables, supplies, and supplementary services via its digital platforms, such as petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com. As of March 23, 2022, Petco maintained a significant retail footprint with approximately 1,500 locations across the United States, Mexico, and Puerto Rico, a network that included about 200 integrated in-store veterinary hospitals. Established in 1965, the company's central operations are based in San Diego, California.
- Sector
- Consumer Cyclical
- Industry
- Specialty Retail
- CEO
- Joel D. Anderson