Ulta Beauty Inc · Retail

ULTA

$537.10

A
Value CreationHigh GrowthAsset Light

As of: 2026-09-01 07:06:41 (KST)

+40.5%

Expected return

62%

Success probability

-28.1%

Downside risk

For informational purposes only.

Not investment advice.

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Investment Summary

Ulta Beauty Inc in the Retail industry earns A grade, reflecting a Monte Carlo score of 73 out of 100. The expected return stands at +40.5%, with a 62% probability of positive outcomes. At the current price of $537.10, These figures are derived from 10,000 Monte Carlo simulations and reflect the inherent uncertainty in financial markets.

Why This Valuation?

The Reverse DCF valuation signals "Strong Buy" for this ticker. An implied growth rate of -21.8% (actual: 13.1%) drives the valuation framework. The estimated P50 intrinsic value of $879 provides a benchmark for assessing current pricing. The Reverse-DCF implied 100% success probability at $521 quantifies the margin of safety implied by this "Strong Buy" assessment.

Grade Explanation

Grade A (score 73) signals compelling risk-reward dynamics. An expected return of +40.5% and a 62% probability of positive returns underscore the favorable setup.

Monte Carlo Interpretation

Across 10,000 simulated paths, the volatility of 63.3% is elevated, producing a wide dispersion of possible returns. The median (P50) return stands at +30.7%, and the distribution skews positive, indicating upside potential outweighs downside risk. The spread between the 10th percentile (-28.1%) and the 75th percentile (+67.4%) is +95.5%.

Risk Summary

Key risk metrics: VaR(5%) of -28.1%, operating margin of 12.4% (at 12.4%, operating margins are adequate but could compress under competitive pressure), and volatility of 63.3%, where elevated volatility warrants close attention. These three dimensions define the risk landscape at $537.

What is DCF (Discounted Cash Flow)?

DCF estimates a company's intrinsic value by discounting its future cash flows to present value. Modelvix uses Monte Carlo simulation to analyze thousands of scenarios.

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What is WACC (Weighted Average Cost of Capital)?

WACC is the average rate a company pays to finance its assets, used as the discount rate in DCF analysis. Modelvix simulates how WACC changes affect valuation.

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What is Terminal Value?

Terminal value represents the perpetual value of a business beyond the forecast period, often comprising the majority of DCF value. Modelvix analyzes terminal value uncertainty across growth scenarios.

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What is Reverse DCF?

Reverse DCF works backward from the current stock price to infer the growth rate the market expects, helping you assess whether a stock is fairly valued. Modelvix shows what growth assumptions the current price implies.

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