You are required to analyse Accent Group Limited (AX1.AX) and prepare an investment recommendation report. The report provides an assessment of the company’s current position and future prospects,...

Accent Group Limited
AUD 2.62
Accent Group Limited is a retailer and distributor of performance and leisure footwear established in Australia. The company runs 479 locations under ten retail banners and has distribution rights for ten multinational brands in Australia and New Zealand. Among the company's brands are Athlete's Foot CAT, Dr (Accent Group, 2021)
FCFE, or Free Cash Flow to Equity, is one of two Discounted Cash Flow valuation methodologies used to determine the stock's fair value (the other being FCFF). It calculates how much "cash" a company can return to its shareholders after deducting taxes, capital expenditure, and debt cash flows. The free cash flow to equity ratio measures how much cash is readily accessible to a company's equity stockholders after all costs, reinvestment, and debt have been paid. FCFE is a metric of how much equity capital is being used. We have employed free cash flow model for the valuation of Accent Group.
Analysts frequently used the FCFE statistic when attempting to estimate a value of the company. This valuation approach grew in popularity as an alternative to the dividend discount model (DDM), particularly when a firm does not pay a dividend.
The first stage may have a positive, negative, or erratic growth rate and will endure for a limited time, but the second stage is...