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:
We started the process of determining a valid price forecast for Benchmark Electronics Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Benchmark Electronics Inc ranked in the 26th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for BHE, they are:
The company's compound free cash flow growth rate over the past 5.58 years comes in at -0.05%; that's greater than only 21.98% of US stocks we're applying DCF forecasting to.
79% of the company's capital comes from equity, which is greater than 63.9% 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 merely 15.21% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Benchmark Electronics Inc? See OMCL, TDY, ASML, BLKB, and BR.