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 27th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for ABC, they are:
The company's compound free cash flow growth rate over the past 5.54 years comes in at -0.07%; that's greater than merely 16.83% of US stocks we're applying DCF forecasting to.
Amerisourcebergen Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -37.46. This coverage rate is greater than that of only 3.38% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Amerisourcebergen Corp experienced a tax rate of about 27% over the past twelve months; relative to its sector (Healthcare), this tax rate is higher than 90.07% of stocks generating 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 DYNT, ABT, CDNA, CPIX, and HSIC.
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Damien Robbins on Seeking Alpha | January 25, 2021
Global Compounding Pharmacies Market Report 2021 is latest research study released by AMA evaluating the market, highlighting opportunities, risk side analysis, and leveraged with strategic and tactical decision-making support. The study provides information on market trends and development, drivers, capacities,