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:
Below please find a table outlining a discounted cash flow forecast for BLD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that TopBuild Corp ranked in the 72th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 171.83%. 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 4.67 years comes in at 0.52%; that's greater than 80.66% of US stocks we're applying DCF forecasting to.
BLD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 33.85% of tickers in our DCF set.
Relative to other stocks in its sector (Industrials), TopBuild Corp has a reliance on debt greater than only 23.18% 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 MAN, SPXC, MEC, MHH, and HOLI.
Residential and Heavy Commercial Insulation $58 Million Annual RevenueExpands Presence and Product Offerings in Texas and Tennessee DAYTONA BEACH, Fla., Jan. 20, 2021 (GLOBE NEWSWIRE) -- TopBuild Corp. (NYSE:BLD) a leading installer and distributor of insulation and building material products in the United States, has acquired LCR Contractors, a fireproofing and insulation company serving the Texas markets of Dallas, Austin and Amarillo and the Tennessee markets of Knoxville and Nashville. Founded in 1984, LCR services both commercial and residential customers. Its product offerings include fireproofing, spray foam, firestopping, thermal & acoustical insulation and intumescent sprays. LCR generated approximately $58 million in revenue for the trailing twelve months ended September 30, 2...
Amid optimism on mass vaccination and broad stimulus package, low rates, solid residential momentum, it makes sense to pick D.R. Horton (DHI), Lennar (MDC), M.D.C (MDC), KB Home (KBH) and TopBuild (BLD) stocks that are expected to maintain the winning streak in 2021.