Hasbro Stock: Is The DCF Valuation Pointing To A Hidden Opportunity?

Summary Earnings are around the corner, tempting me to look into Hasbro to see if there is an opportunity. Negative sentiment around the management and how it is becoming greedy with its largest operating profit maker is a red flag. Financials show a mixed bag. 10-year DCF model with conservative growth and margin of safety shows Hasbro is fairly priced and warrants a Hold rating until we see some change. Justin Sullivan Investment Thesis After reviewing the updated management outlook for the company, I analyzed its potential growth using a 10-year discounted cash flow model and additional research and analysis. While there is potential for the company, at present it is fairly valued. Thus, I recommend a hold rating until it becomes clearer if the planned cost-cutting measures will result in improved operating margins and if they will not squander the massive potential that Wizards of the Coast has in the future. I like to have a look at companies right before the big earnings come out, and for Hasbro (NASDAQ: HAS ) it is on the 16th of February. I wanted to see if the company is a good investment before the full-year earnings release, by looking at […]

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