Avantor, Inc. is a global provider of mission critical products and services. Its products include materials and consumables, equipment and instrumentation, and services and specialty procurement. Materials and consumables includes chemicals and reagents, lab products and supplies, specialized formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits and education and microbiology and clinical trial kits. Equipment and instrumentation includes filtration systems, virus inactivation systems, incubators, analytical instruments, evaporators, ultra-low-temperature freezers, biological safety cabinets and critical environment supplies. Services and specialty procurement include onsite lab and production, clinical, equipment, procurement and sourcing, and biopharmaceutical material scale-up and development services.
AVTR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for AVTR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Avantor Inc ranked in the 88th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1873.5%. As for the metrics that stood out in our discounted cash flow analysis of Avantor Inc, consider:
The company's compound free cash flow growth rate over the past 0.79 years comes in at 1.2%; that's greater than 93.09% of US stocks we're applying DCF forecasting to.
Avantor Inc's effective tax rate, as measured by taxes paid relative to net income, is at 1 -- greater than only 23.63% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 9. This value is greater than 72.59% stocks in the Basic Materials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
GMS, VALE, FRTA, TMST, and UNVR can be thought of as valuation peers to AVTR, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.