Discounted Free Cash Flow Model: American Eagle Looks Undervalued

I am just finishing up my undergrad studies in finance and, as such, posts have been relatively few and far between lately. One firm I have been increasingly doing due diligence on is American Eagle in the retail/merchandising sector. The firm appears to be an

with a strong balance sheet and stable revenue. Though profit margins are eroding due to higher cost of goods sold, the firm has a solid plan for future growth including increased promotion of standalone brands, storefront expansion and remodeling, and an increased online presence.

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