Addus HomeCare Corporation provides services including personal care and assistance with activities of daily living, and adult day care. The company was founded in 1979 and is based in Downers Grove, Illinois.
ADUS 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 Addus HomeCare Corp. To summarize, we found that Addus HomeCare Corp ranked in the 44th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 29.5%. The most interesting components of our discounted cash flow analysis for Addus HomeCare Corp ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 14.56 -- which is good for besting 75.3% of its peer stocks (US stocks in the Healthcare sector with positive cash flow).
The business' balance sheet reveals debt to be 5% of the company's capital (with equity being the remaining amount). Approximately only 16.28% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
ADUS'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 43.51% of tickers in our DCF set.
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 Addus HomeCare Corp? See USPH, AMGN, QDEL, NVS, and STE.
Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home care services, today announced that Veronica Hill-Milbourne and Esteban López, M.D. have been appointed to the Company's Board of Directors, effective January 11, 2021.