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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Aptiv PLC. To summarize, we found that Aptiv PLC ranked in the 6th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Aptiv PLC, consider:
Its compound free cash flow growth rate, as measured over the past 5.47 years, is -0.2% -- higher than just 7.78% of stocks in our DCF forecasting set.
APTV'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 25.95% 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 just 21.99% of stocks generating free cash flow.
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 BLL, DBI, TPR, APEX, and BYD.
DUBLIN, Sept. 17, 2020 /PRNewswire/ -- Aptiv PLC (NYSE: APTV), a global technology company focused on making mobility safer, greener, and more connected, will present at the Evercore ISI Virtual New Mobility & AI Forum. Aptiv's Senior Vice President and Chief Technology Officer, Glen De…
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