American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities for the remodeling and home construction markets in the United States. The company was founded in 1980 and is based in Winchester, Virginia.
AMWD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for AMWD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that American Woodmark Corp ranked in the 78th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for American Woodmark Corp ended up being:
The company's compound free cash flow growth rate over the past 5.5 years comes in at 0.26%; that's greater than 71.06% of US stocks we're applying DCF forecasting to.
American Woodmark Corp's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 8.54% of tickers in our DCF set.
As a business, American Woodmark Corp experienced a tax rate of about 17% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 63.4% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
GM, LBTYA, LAZY, MGA, and CHUY can be thought of as valuation peers to AMWD, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.