Berry Plastics Group manufactures and distributes plastic consumer packaging and engineered materials in North America and internationally. The company operates through four segments: Rigid Open Top, Rigid Closed Top, Engineered Materials, and Flexible Packaging. The company was founded in 1967 and is based in Evansville, Indiana.
BERY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Berry Global Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Berry Global Group Inc ranked in the 77th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 471.33%. The most interesting components of our discounted cash flow analysis for Berry Global Group Inc ended up being:
The company has produced more trailing twelve month cash flow than 88.23% of its sector Consumer Cyclical.
36% of the company's capital comes from equity, which is greater than merely 17.43% of stocks in our cash flow based forecasting set.
Berry Global Group Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 1.07% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DLA, DISCA, TILE, CETV, and NCMI can be thought of as valuation peers to BERY, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Conagra Brands and Berry Global today announced a new package design for Conagra's Swiss Miss Hot Cocoa line, representing the first major hot cocoa brand to move from round canisters to a more eco-efficient recyclable cube. Created in partnership with Berry Global's Blue Clover Studios, the new light blue easy-grip container is made of recyclable plastic with a wraparound in-mold label and a space-efficient tapered cube design that, based on an analysis conducted by Berry Global, reduces the carbon footprint associated with manufacturing and transporting the hot cocoa containers by 15 percent1. The new package design will initially be used for Conagra Brands' 38-ounce size Swiss Miss Milk Chocolate Hot Cocoa Mix.
I wanted to look at some stocks that are more "recession-resistant" in order to build up the defensive side of my portfolio. Berry Global (BERY) came in one of my screens, and I wanted to do some due diligence. I believe the company is a safe business with reasonable growth...
Value Kicker on Seeking Alpha | September 10, 2020
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