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:
We started the process of determining a valid price forecast for Autoliv Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Autoliv Inc ranked in the 17th 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:
Its compound free cash flow growth rate, as measured over the past 5.77 years, is -0.11% -- higher than only 15.99% of stocks in our DCF forecasting set.
Autoliv Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 11.24% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 0% of stocks in its sector (Consumer Cyclical).
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 LYV, TPR, UFI, GT, and SEE.
(Bloomberg) -- The extent of the devastation wrought on the European car industry by the coronavirus pandemic came into sharp focus on Friday when a sampling of major vehicle and parts manufacturers from France to Sweden revealed plans for at least 35,000 job cuts.Renault SA said it will eliminate about 14,600 workers worldwide and lower production capacity by almost a fifth as part of a sweeping three-year overhaul. The cuts in France were unveiled just as Stockholm-based Autoliv Inc., the world’s largest supplier of seat belts and airbags, said it’s also culling workers. And in Germany, BMW AG chimed in with sweetened incentives to get 5,000 workers to leave, while supplier ZF Friedrichshafen laid plans to eliminate as many as 15,000 positions.The thinning-out come as the continent’s ...
Autoliv, Inc. (NYSE: ALV) (SSE: ALIVsdb), the worldwide leader in vehicle safety systems, today provides updates on market and company measures to manage the auto industry downturn caused by the COVID-19 pandemic.
Sweden's Autoliv , the world's largest maker of airbags and seatbelts, on Friday said it had seen a very challenging start to the second quarter with the North American and European markets grinding to a halt in April. "With our largest markets Americas and Europe virtually standing still in April, the challenges we are managing in the second quarter are unprecedented," Autoliv CEO Mikael Bratt said in a statement. In Europe, Autoliv's sales in April declined by 89% compared to a year earlier, while sales fell by 96% in the Americas region.