THO:NYS Report

Fundamental Valuation Report

Thor Industries(THO:NYS)

Consumer Cyclical:Recreational Vehicles

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Close Price/Date
$94.65 (USD) 09/28/2020

Weighted Valuation
$99.70 (USD)

Overall Rating
Undervalued by 5.3%

Valuation Models Comparables: $99.81 (USD)
Multiples: $100.95 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation
According to Analyst consensus at $110.00 this stock is Undervalued

Company Overview (THO:NYS USD)

Price 94.65
Range 90.79 – 98.30
52 week 34.61 – 120.74
Open 97.16
Vol / Avg. 2.74M/1.19M
Mkt cap 5.15B
P/E 26.44
Div/yield 1.60/0.02
EPS 4.04
Shares 55.2M
Beta 2.47

Company Description

Thor Industries is an American manufacturer of recreational vehicles through its subsidiaries. The company reports through three segments: North American towable recreational vehicles, North American motorized recreational vehicles, and European recreational vehicles. The North American towable RV business segments operations by brand: Airstream, Heartland, Jayco, Keystone, and KZ. North American motorized RV does the same through the Airstream, Jayco, and Thor Motor Coach brands. Thor’s European RV business consists solely of the Erwin Hymer Group, which manufactures both towable and recreational vehicles in Europe. EHG’s operations include miscellaneous RV-related products and services. Across all segments, the firm distributes its RVs to independent dealers.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for THO:NYS

Using a discounted cash flow model we generated an intrinsic value of $59.59 (USD) for THO:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

THO:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $59.59 1% 5% 1% 5%
WACC (or Ke) 14.36 $66.04 $54.18
Terminal Growth Rate 3.00 $55.18 $64.85
Tax Rate 0.19 $63.79 $55.39
Cash Flow 636,039,815 $55.83 $63.35
Capital Expenditures -100,569,600 $59.11 $60.07
Long Term Debt 360,000,000 $59.91 $59.26

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $99.81 (USD) for THO:NYS. We also generated a valuation of $116.06 (USD) using other metrics and comparables.
The comparable companies were Fox Factory Hldg (FOXF:NAS), Patrick Industries (PATK:NAS), Malibu Boats (MBUU:NAS), Polaris (PII:NYS) and Harley-Davidson (HOG:NYS).

Company THO:NYS End Date Value
Earnings/Share $4.02 (USD)
Book Value/Share $37.80 (USD)
Sales/Share $147.45 (USD)
Cash Flow/Share $10.30 (USD)
EBITDA/Share $10.40 (USD)
Price Based on Comps Adjustment Factor (%)
$126.24 (USD) -30.7
$161.16 (USD) -87.1
$228.81 (USD) -48.0
$136.67 (USD) -15.1
$229.73 (USD) -34.8
26.44 PE Ratio 31.40 40.75 20.66 16.38 0.00 47.82
2.50 PB Ratio 4.26 4.96 2.68 3.92 7.50 2.26
0.64 PS Ratio 1.55 3.89 0.61 1.54 0.89 0.82
9.19 PCF Ratio 16.20 49.53 9.48 10.71 7.50 3.76
12.07 EV to EBITDA 22.08 28.77 10.34 9.89 31.90 29.50


Using a multiples approach we generated a valuation of  $100.95 (USD) for THO:NYS

Company THO:NYS End Date Value
Earnings/Share $4.04 (USD)
Book Value/Share $37.80 (USD)
Sales/Share $147.45 (USD)
Cash Flow/Share $10.30 (USD)
EBITDA/Share $10.44 (USD)
Price Based on Comps Adjustment Factor
$65.89 (USD) 0
$108.86 (USD) 0
$105.44 (USD) 0
$126.93 (USD) 0
$97.61 (USD) 0
Ratios Ratio Average
PE Ratio 16.31
PB Ratio 2.88
PS Ratio 0.72
PCF Ratio 12.33
EV to EBITDA 9.35

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  THO:NYS for the last 10 years was  2.91

We ran the Adjusted Book Value for  THO:NYS and generated a book value of  $42.03 (USD)
By multiplying these we get an adjusted valuation of  $122.10 (USD)

Analyst Data

In the Stockcalc database there are 1 analysts that provide a valuation for THO:NYS. The 1 analysts have a concensus valuation for THO:NYS for 2021 of $110.00 (USD).

THO:NYS Thor Industries

No analyst recommendation
Current Price: not available

No analyst consensus

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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