Astec Industries is a manufacturer of specialized equipment for asphalt road building; aggregate processing; oil, gas and water well drilling; and wood processing. The company was founded in 1972 and is based in Chattanooga, Tennessee.
ASTE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Astec Industries Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Astec Industries Inc ranked in the 72th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 198.5% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Astec Industries Inc, consider:
The business' balance sheet suggests that 0% of the company's capital is sourced from debt; this is greater than merely 2.27% of the free cash flow producing stocks we're observing.
Astec Industries Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 0% of stocks in its sector (Industrials).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ASTE, try ARCB, SLNG, B, TIKK, and WERN.