Autoliv develops and manufactures automotive safety systems for all major automotive manufacturers in the world. The company was founded in 1953 and is based in Stockholm, Sweden.
ALV Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ALV, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Autoliv Inc ranked in the 50th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for ALV, they are:
The company has produced more trailing twelve month cash flow than 65.2% of its sector Consumer Cyclical.
Autoliv Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 9.96% of tickers in our DCF set.
Autoliv Inc's effective tax rate, as measured by taxes paid relative to net income, is at 19 -- greater than 76.34% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ALV, try PKG, THO, WWW, MTOR, and SCI.