ADT Corporation provides monitored security, interactive home and business automation, and related monitoring services in the United States and Canada. The ADT Corporation was founded in 1874 and is based in Boca Raton, Florida.
ADT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for ADT Inc. To summarize, we found that ADT Inc ranked in the 0th 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 ADT, they are:
24% of the company's capital comes from equity, which is greater than just 13.93% of stocks in our cash flow based forecasting set.
ADT Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 0.16. This coverage rate is greater than that of just 18.97% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is -3. This value is greater than just 0% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CFX, GLBS, MEC, RRD, and SALT can be thought of as valuation peers to ADT, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.