AmerisourceBergen Corporation sources and distributes pharmaceutical products to healthcare providers, pharmaceutical and biotech manufacturers, and specialty drug patients in the United States and internationally. The company was founded in 1985 and is based in Chesterbrook, Pennsylvania.
ABC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ABC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Amerisourcebergen Corp ranked in the 54th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Amerisourcebergen Corp ended up being:
ABC's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 29.16% of tickers in our DCF set.
Amerisourcebergen Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 8. This value is greater than merely 20.22% stocks in the Healthcare 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 Amerisourcebergen Corp? See HNGR, SNY, IART, UNH, and AHPI.
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