ABB Ltd. provides power and automation technologies for utility and industrial customers worldwide. These solutions include power products, power systems, automation products, process automation and robotics. The company was founded in 1883 and is based in Zurich, Switzerland.
ABB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Abb Ltd with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Abb Ltd ranked in the 14th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Abb Ltd ended up being:
Its compound free cash flow growth rate, as measured over the past 4.66 years, is -0.1% -- higher than merely 13.88% of stocks in our DCF forecasting set.
ABB's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 26.88% of tickers in our DCF set.
The weighted average cost of capital for the company is 8. This value is greater than merely 24.13% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Abb Ltd? See HURC, ATRO, DCO, DESP, and EFX.
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