Amphenol Corporation primarily designs, manufactures, and markets electrical, electronic, and fiber optic connectors worldwide. It operates through two segments, Interconnect Products and Assemblies, and Cable Products and Solutions. The company was founded in 1932 and is based in Wallingford, Connecticut.
APH 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 Amphenol Corp. To summarize, we found that Amphenol Corp ranked in the 33th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 56%. In terms of the factors that were most noteworthy in this DCF analysis for APH, they are:
The business' balance sheet reveals debt to be 9% of the company's capital (with equity being the remaining amount). Approximately just 23.96% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
APH's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 36.74% of tickers in our DCF set.
The weighted average cost of capital for the company is 9. This value is greater than merely 24.26% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as APH, try MLAB, NXPI, RMNI, TDY, and BR.
Amphenol (NYSE:APH) is scheduled to issue its quarterly earnings data before the market opens on Wednesday, January 27th. Analysts expect the company to announce earnings of $1.01 per share for the quarter. Persons that wish to register for the company’s earnings conference call can do so using this link. Amphenol (NYSE:APH) last released its quarterly […]
Illinois Tool Works Inc. (NYSE: ITW), a global multi-industrial manufacturing leader, and Amphenol Corporation (NYSE: APH), a leading global provider of high-technology interconnect, antenna and sensor solutions, today announced that they have entered into an agreement under which ITW will acquire MTS Systems Corporation’s (Nasdaq: MTSC) Test & Simulation business, following the closing of Amphenol’s acquisition of MTS.