American Axle & Manufacturing Holdings, Inc. (AXL) Company Bio
American Axle & Manufacturing Holdings designs, engineers, validates, and manufactures driveline and drivetrain systems, and related components and chassis modules for the automotive industry. The company was founded in 1994 and is based in Detroit, Michigan.
AXL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for American Axle & Manufacturing Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that American Axle & Manufacturing Holdings Inc ranked in the 34th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 55.33%. The most interesting components of our discounted cash flow analysis for American Axle & Manufacturing Holdings Inc ended up being:
23% of the company's capital comes from equity, which is greater than just 6.11% of stocks in our cash flow based forecasting set.
American Axle & Manufacturing Holdings Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -4.28. This coverage rate is greater than that of only 13.36% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 17. This value is greater than 95.61% stocks in the Consumer Cyclical sector that generate free cash flow.
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 AXL, try FLWS, PVH, RSTRF, TALN, and ICON.
DETROIT, Jan. 11, 2021 /PRNewswire/ -- American Axle & Manufacturing Holdings, Inc. (AAM) (NYSE: AXL), a leading global automotive supplier of driveline and metal forming technologies, and Suzhou Inovance Automotive Ltd. (Inovance Automotive), a leading provider of automotive power…