TopBuild Corporation installs insulation and other building products in the United States. The company operates in two segments, Installation and Distribution. The company was founded in 2015 and is based in Daytona Beach, Florida.
BLD 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 TopBuild Corp. To summarize, we found that TopBuild Corp ranked in the 80th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of TopBuild Corp, consider:
The company's compound free cash flow growth rate over the past 4.18 years comes in at 0.55%; that's greater than 84.39% of US stocks we're applying DCF forecasting to.
TopBuild Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 8.25. This coverage rate is greater than that of 72.15% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Basic Materials), TopBuild Corp has a reliance on debt greater than merely 24.59% of them.
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 TopBuild Corp? See RS, ODC, SUM, CF, and HDSN.
Nomura Instinet downgraded several companies dependent on housing market growth Thursday, citing U.S.-China trade uncertainty that could put a damper on consumer confidence and economic growth. The Analyst Michael Wood downgraded four building-related companies from Buy to Neutral: TopBuild Corp (NYSE: BLD ), with a target price lowered from $90 to $85; GMS Inc (NYSE: GMS ), with a target price lowered from $27 to $20; Installed Building Products Inc (NYSE: IBP ), with a target price lowered from $54 to $50; and Owens Corning (NYSE: OC ), with a target price lowered from $78 to $48. The Thesis It’s hard to pinpoint what effect escalating tariffs might have on housing, Wood said in the Thursday downgrade note. Yet "given the large-ticket nature of home buying, demand can be postponed for...
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