Bio-Rad Laboratories manufactures and supplies products and systems used to separate complex chemical and biological materials, as well as to identify, analyze, and purify their components for life science research, healthcare, analytical chemistry, and other markets. The company operates through two segments, Life Science and Clinical Diagnostics. The company was founded in 1952 and is based in Hercules, California.
BIO 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 Bio-Rad Laboratories Inc. To summarize, we found that Bio-Rad Laboratories Inc ranked in the 27th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 58.5%. As for the metrics that stood out in our discounted cash flow analysis of Bio-Rad Laboratories Inc, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 88.91 -- which is good for besting 94.02% of its peer stocks (US stocks in the Healthcare sector with positive cash flow).
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately just 13.08% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
BIO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 48.71% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
NUVA, LCI, PKI, GTS, and HOLX can be thought of as valuation peers to BIO, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
Health care, one of the largest and most complex sectors, is comprised of a broad range of companies that sell medical products and services. The health care sector includes companies that sell drugs, medical devices, and insurance, as well as hospitals and health care providers. Health care stocks, as represented by the Health Care Select Sector SPDR ETF (XLV), have outperformed the broader market, providing investors with a total return of 6.8% compared to the S&P 500's total return of 5.5% over the past 12 months. The market performance numbers and the statistics in the tables in this story are as of June 24.
S&P; Dow Jones Indices will make the following index adjustments to the S&P; 500, S&P; MidCap 400 and S&P; SmallCap 600 to ensure each index more appropriately represents its market capitalization range. The changes will be effective prior to the open of trading on Monday, June 22 to coincide with the June quarterly rebalance.