AptarGroup Inc. is a supplier of a broad range of innovative dispensing solutions for the beauty, personal care, home care, prescription drug, consumer health care, injectables, food, and beverage markets. The company was founded in 1992 and is based in Crystal Lake, Illinois.
ATR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Aptargroup Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Aptargroup Inc ranked in the 35th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 14%. As for the metrics that stood out in our discounted cash flow analysis of Aptargroup Inc, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 97. Notably, its equity weight is greater than 96.82% of US equities in the Consumer Cyclical sector yielding a positive free cash flow.
The business' balance sheet reveals debt to be 3% of the company's capital (with equity being the remaining amount). Approximately merely 8.76% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
ATR'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 57.7% 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 ATR, try CRWS, HD, ROST, BFAM, and DPZ.