Aptiv plc, formerly Delphi Automotive Group, manufacturers vehicle components; and provides electrical and electronic, powertrain, safety, and thermal technology solutions to the automotive and commercial vehicle markets worldwide. The company operates through four segments: Electrical/Electronic Architecture, Powertrain Systems, Electronics and Safety, and Thermal Systems. The company is based in Gillingham, the United Kingdom.
APTV Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for APTV, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Aptiv PLC ranked in the 30th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 29.67%. In terms of the factors that were most noteworthy in this DCF analysis for APTV, they are:
The company's compound free cash flow growth rate over the past 5.52 years comes in at -0.03%; that's greater than merely 23.75% of US stocks we're applying DCF forecasting to.
As a business, APTV is generating more cash flow than 85.1% of positive cash flow stocks in the Consumer Cyclical.
Aptiv PLC's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 20.66% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as APTV, try NATH, ORLY, WW, IMAX, and HGV.