Ashland Global Holdings Inc. provides specialty chemical solutions to customers in a wide range of consumer and industrial markets, including architectural coatings, automotive, construction, energy, food and beverage, personal care and pharmaceutical. The company was founded in 1924 and is based in Covington, Kentucky.
ASH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Ashland Global Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Ashland Global Holdings Inc ranked in the 4th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for ASH, they are:
The company's compound free cash flow growth rate over the past 5.77 years comes in at -0.29%; that's greater than merely 5.53% of US stocks we're applying DCF forecasting to.
Ashland Global Holdings Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.51. This coverage rate is greater than that of only 18.58% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Ashland Global Holdings Inc experienced a tax rate of about 31% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than 91.52% 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 Ashland Global Holdings Inc? See AVD, CDE, DD, OSN, and AA.
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Ashland Global Holdings Inc. (ASH) today provided an update for preliminary fiscal 2020 second-quarter financial results, its response to the COVID-19 pandemic, and strong financial position. The Ashland portfolio performed well during the quarter, despite the global macroeconomic uncertainty brought on by the COVID-19 pandemic. Ashland expects a loss from continuing operations during the second fiscal quarter of approximately $580 million, or approximately -$9.56 per diluted share, driven primarily by a goodwill impairment charge following the business unit realignment during the quarter (see Table 1 for estimated significant key item amounts and descriptions).