Anixter International is a leading global distributor of enterprise cabling and security solutions, electrical and electronic wire and cable. The company was founded in 1957 and is based in Glenview, Illinois.
AXE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Anixter International Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Anixter International Inc ranked in the 23th 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 AXE, they are:
Its compound free cash flow growth rate, as measured over the past 5.57 years, is -0.07% -- higher than just 19.88% of stocks in our DCF forecasting set.
As a business, AXE is generating more cash flow than 58.31% of positive cash flow stocks in the Industrials.
Anixter International Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 20.73% of tickers in our DCF set.
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 AXE, try BDC, GFF, GGG, SPXC, and CNI.