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
DCF Fair Value Target:
We started the process of determining a valid price forecast for Agco Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Agco Corp ranked in the 64th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 120.17%. The most interesting components of our discounted cash flow analysis for Agco Corp ended up being:
Agco Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 11.71% of tickers in our DCF set.
AGCO'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 merely 11.71% of tickers in our DCF set.
As a business, Agco Corp experienced a tax rate of about 36% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than 94.16% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
KSU, IMXI, HNI, RGP, and EBF can be thought of as valuation peers to AGCO, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
AGCO, Your Agriculture Company (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment and infrastructure, announced today that it will participate in the Stifel 2020 Cross Sector Insight Conference on Monday, June 8, 2020. The conference will include a presentation by Andy Beck, AGCO's Senior Vice President and Chief Financial Officer at 10:00 a.m. E.T. Investors may listen to a live webcast of the presentation by accessing the webcast button in the "Investors" section of the Company’s website at http://www.agcocorp.com/company/investors.aspx. The webcast will also be archived immediately afterwards.
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