AGCO Corporation (AGCO): Price and Financial Metrics

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AGCO Price/Volume Stats

AGCO Corporation (AGCO) Company Bio

AGCO is focused on the design, manufacture and distribution of agricultural machinery, including a range of agricultural equipment and related replacement parts, including tractors, combines, hay tools, sprayers, and forage equipment. The company was founded in 1990 and is based in Duluth, Georgia.

AGCO Price Forecast Based on DCF Valuation

The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Agco Corp. To summarize, we found that Agco Corp ranked in the 47th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Agco Corp ended up being:

• AGCO'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 31.02% of tickers in our DCF set.
• Agco Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 48.67. This coverage rate is greater than that of 90.85% of stocks we're observing for the purpose of forecasting via discounted cash flows.
• As a business, Agco Corp experienced a tax rate of about 22% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than 86.32% of stocks generating free cash flow.

For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AGCO, try CODI, CR, PWR, ALLE, and CRS.