Benchmark Electronics provides integrated manufacturing, design, and engineering services to original equipment manufacturers of industrial control equipment (which includes equipment for the aerospace and defense industry), telecommunication equipment, computers and related products for business enterprises, medical devices, and testing and instrumentation products. The company was founded in 1979 and is based in Angleton, Texas.
BHE 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 Benchmark Electronics Inc. To summarize, we found that Benchmark Electronics Inc ranked in the 28th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Benchmark Electronics Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.82 years, is -0.05% -- higher than only 22.01% of stocks in our DCF forecasting set.
78% of the company's capital comes from equity, which is greater than 61.54% of stocks in our cash flow based forecasting set.
The weighted average cost of capital for the company is 7. This value is greater than just 14.92% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BHE, try NXGN, VSH, BR, HMSY, and QRTEA.