Belden Inc. designs, manufactures, and markets signal transmission solutions for use in broadcast, enterprise, and industrial applications worldwide. The company was founded in 1902 and is based in St. Louis, Missouri.
BDC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Belden Inc. To summarize, we found that Belden Inc ranked in the 25th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 64.83%. In terms of the factors that were most noteworthy in this DCF analysis for BDC, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 54. Notably, its equity weight is greater than only 24.04% of US equities in the Industrials sector yielding a positive free cash flow.
Belden Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
Belden Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -4.99. This coverage rate is greater than that of just 8.64% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
NLSN, TRI, GGG, MATX, and ZTO can be thought of as valuation peers to BDC, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.