Ametek Inc. manufactures electronic instruments and electromechanical devices worldwide for the aerospace, power, industrials, oil, gas, petrochemical, pharmaceutical, semiconductor, factory automation, laboratory equipment, ultra precision manufacturing, medical, and test and measurement markets. The company was founded in 1930 and is based in Berwyn, Pennsylvania.
AME Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Ametek Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Ametek Inc ranked in the 36th 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 AME, they are:
As a business, AME is generating more cash flow than 88.21% of positive cash flow stocks in the Industrials.
The business' balance sheet reveals debt to be 10% of the company's capital (with equity being the remaining amount). Approximately just 24.17% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
AME's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 35.71% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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