Aerojet Rocketdyne Holdings, Inc. (AJRD) Company Bio
Aerojet Rocketdyne provides propulsion and energetics to the space, missile defense and strategic systems, tactical systems and armaments areas. The company operates in two segments, Aerospace and Defense, and Real Estate. Aerojet Rocketdyne Holdings, Inc. was founded in 1915 and is based in Rancho Cordova, California.
AJRD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for AJRD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Aerojet Rocketdyne Holdings Inc ranked in the 63th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 109% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for AJRD, they are:
Aerojet Rocketdyne Holdings Inc's effective tax rate, as measured by taxes paid relative to net income, is at 19 -- greater than 75.09% of US stocks with positive free cash flow.
Aerojet Rocketdyne Holdings Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 6.31. This coverage rate is greater than that of 67.87% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 8. This value is greater than just 23.98% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FC, IR, AAWW, CATM, and HQI can be thought of as valuation peers to AJRD, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
DUBLIN, Sept. 15, 2020 /PRNewswire/ -- The "Space Letter International Volume 3 - Aerojet Rocketdyne: Financial Update and United States Anti-Ballistic Missile Markets Analysis Including Ground-Based Midcourse Defense, Aegis Ballistic Missile Defense, Patriot Advanced Capability-3,…
DUBLIN--(BUSINESS WIRE)--The "Space Letter International Volume 3 - Aerojet Rocketdyne: Financial Update and United States Anti-Ballistic Missile Markets Analysis Including Ground-Based Midcourse Defense, Aegis Ballistic Missile Defense, Patriot Advanced Capability-3, Terminal High Altitude Area Defense" company profile has been added to ResearchAndMarkets.com's offering. With an estimated 2020 revenue of $2 billion and approximately 5,000 employees, Aerojet Rocketdyne barely makes it into the