Artisan Partners Asset Management Inc. (APAM) Company Bio
Artisan Partners Asset Management provides its services to pension and profit sharing plans, trusts, endowments, foundations, charitable organizations, government entities, private funds and non-U.S. funds, as well as mutual funds, non-U.S. funds and collective trusts. It manages separate client-focused equity and fixed income portfolios. The company was founded in 1994 and is based in Milwaukee, Wisconsin.
APAM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Artisan Partners Asset Management Inc. To summarize, we found that Artisan Partners Asset Management Inc ranked in the 63th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 130.67% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for APAM, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 79. Its equity weight surpasses that of 58.1% of free cash flow generating stocks in the Financial Services sector.
APAM'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 27.76% of tickers in our DCF set.
Artisan Partners Asset Management Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 17.68. This coverage rate is greater than that of 83.33% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SAMG, UIHC, AIZ, HRTG, and FSAM can be thought of as valuation peers to APAM, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.