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:
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 56th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Agco Corp, consider:
Agco Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 19.92% of tickers in our DCF set.
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 merely 19.92% of tickers in our DCF set.
As a business, Agco Corp experienced a tax rate of about 28% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than 89.46% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AGCO, try RBC, DXPE, PKOH, AIMC, and PRGX.
AGCO, Your Agriculture Company, (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment, announced today the election of Matthew Tsien to its Board of Directors effective January 22, 2021. "We are delighted to have Matthew join our Board," said Eric Hansotia, Chairman, President and CEO of AGCO Corporation. "His wealth of knowledge and experience with technology and product development will be invaluable as we continue to evolve AGCO’s smart solutions for our farmer customers. He will provide an important perspective and contribution to our board."
AGCO (NYSE: AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and solutions, today announced intended changes and recent additions to its senior leadership team to further increase customer focus and strengthen investment in precision agriculture and digital solutions to maximize stakeholder value.