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:
We started the process of determining a valid price forecast for Aptiv PLC with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Aptiv PLC ranked in the 10th 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 APTV, they are:
Its compound free cash flow growth rate, as measured over the past 5.77 years, is -0.17% -- higher than just 11.43% of stocks in our DCF forecasting set.
Aptiv PLC's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 24.2% of tickers in our DCF set.
As a business, Aptiv PLC experienced a tax rate of about 3% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than merely 22.93% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Aptiv PLC? See DIS, BLBD, BXG, BYD, and CBDS.
Elena Rosman, Aptiv's Vice President of Investor Relations, you may begin your conference. Good morning, and thank you to everyone for joining Aptiv's Second Quarter 2020 Earnings Conference Call. Today's review of our actual financials exclude restructuring and other special items and will address the continuing operations of Aptiv.
Aptiv PLC (NYSE: APTV), a global technology company focused on making mobility safer, greener and more connected, today reported a second quarter 2020 U.S. GAAP loss of $1.43 per diluted share. Excluding special items, the second quarter loss totaled $1.10 per diluted share. These results include the adverse impacts of global vehicle production declines of 45% (54% on an Aptiv weighted market basis1) in the second quarter, largely resulting from the ongoing impacts of the novel coronavirus ("COVID-19") pandemic.