Is $ULTA stock a buy? Down 15% today. Let's take a look

Using our reverse DCF calculator, the market is pricing ULTA to grow its free cash flow by negative 0.67% for the next 10 years, and then by 4.51% every year after that. See the image below.

7.8% discount rate is the WACC taken from Finbox. 4.51% terminal growth is the US 30-year yield.

FCF per share of $21.44.

Now, if your required rate of return is 12% (second image below), ULTA would need to grow by 9.9% every year for the next 10 years.

Do you think 9.9% is possible? Its FCF CAGR over the past 5 years is 10.3%. If so, you can make 12% per year.

Check out our reverse DCF calculator here: https://investorscompass.com/reverse-dcf