Badger Meter Inc. offers flow measurement and control products, serving water utilities, municipalities, and commercial and industrial customers worldwide. The Company's products measure water, oil, chemicals, and other fluids, and are known for accuracy, long-lasting durability and for providing valuable and timely measurement data. The company was founded in 1905 and is based in Milwaukee, Wisconsin.
BMI 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 Badger Meter Inc. To summarize, we found that Badger Meter Inc ranked in the 51th 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 Badger Meter Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 244.51 -- which is good for besting 98.69% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately only 3.14% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
BMI'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 64.66% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BMI, try OSK, SNA, ETN, CR, and MMS.