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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Autoliv Inc. To summarize, we found that Autoliv Inc ranked in the 12th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Autoliv Inc ended up being:
In the past 5.83 years, Autoliv Inc has a compound free cash flow growth rate of -0.17%; that's better than only 13.12% of cash flow producing equities in the Consumer Cyclical sector, where it is classified.
Autoliv Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 14.19% of tickers in our DCF set.
ALV'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 only 14.19% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
WWE, HHS, FUN, GOOS, and JILL can be thought of as valuation peers to ALV, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.