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 76th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 246.83% on a DCF basis. The most interesting components of our discounted cash flow analysis for Berry Global Group Inc ended up being:
40% of the company's capital comes from equity, which is greater than just 13.36% of stocks in our cash flow based forecasting set.
Berry Global Group Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 1.14% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), Berry Global Group Inc has a reliance on debt greater than 85.55% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HBI, YETI, CTB, CROX, and LEE 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.
Moody's Investors Service ("Moody's") assigned a Ba2 rating to Berry Global Inc.'s (a wholly owned subsidiary of Berry Global Group Inc. ("Berry")) $800 million senior secured first lien notes due 2024. The Ba3 Corporate Family Rating (CFR), Ba3-PD Probability of Default Rating (PDR), and SGL-2 Speculative Grade Liquidity Rating (SGL) under Berry Global Group Inc. are unchanged.
Berry Global, Inc., a wholly-owned subsidiary of Berry Global Group ([[BERY]] +1.2%) to issue a new series of first priority senior secured notes due 2024. Net proceeds will be used to prepay a portion of certain existing term loans of the Issuer and to pay certain fees and expenses related...
Berry Global Group, Inc. (NYSE:BERY) (“Berry”) announced today the pricing of the private placement launched January 11, 2021, by its wholly owned subsidiary, Berry Global, Inc. (the “Issuer”). The Issuer will issue $800,000,000 of first priority senior secured notes due 2024 (the “Notes”). The closing of the private placement offering is expected to occur on… Read More »Berry Global Group, Inc. Announces Pricing of Private Placement Notes Offering