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 35th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Autoliv Inc ended up being:
The company has produced more trailing twelve month cash flow than 69.12% of its sector Consumer Cyclical.
Autoliv Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 10.65% 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 75.77% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CPRI, HGV, FNKO, IGT, and PVH 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.
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...