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 12th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 89%. As for the metrics that stood out in our discounted cash flow analysis of Autoliv Inc, consider:
Its compound free cash flow growth rate, as measured over the past 5.41 years, is -0.11% -- higher than just 14.27% 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 11.34% of tickers in our DCF set.
As a business, Autoliv Inc experienced a tax rate of about 19% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 72.49% of stocks generating 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 EVC, KNDI, BOOT, DIN, and VAC.
Autoliv, Inc. (ALV) Q2 2020 Earnings Conference Call July 17, 2020 08:00 A.M. ET Company Participants Anders Trapp - VP, IR Mikael Bratt - President and CEO Fredrik Westin - CFO Conference Call Participants Emmanuel Rosner - Deutsche Bank Hampus Engellau - Handelsbanken Rod Lache - Wolfe Research James Picariello...
Autoliv (ALV) reports organic sales dropped 48% in Q2. April sales declined organically by 65%, May by 55% and June by 20%.Sales by product: Airbags: $653.8M (-54.5%); Seatbelts: $393.8M (-45.2%).Sales down 71.9% in America, 61.4% in Europe, 22.4% in Asia (China +4.8%).Gross margin rate squeezed 1720 bps to 1.4% and SG&A expense rate up...