Broadridge Financial Solutions, Inc. (BR) Company Bio
Broadridge Financial provides investor communications and technology-driven solutions for the financial services industry in the United States, Canada, the United Kingdom, and internationally. The company was founded in 2007 and is based in Lake Success, New York.
BR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for BR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Broadridge Financial Solutions Inc ranked in the 27th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Broadridge Financial Solutions Inc ended up being:
BR'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 37.21% of tickers in our DCF set.
Broadridge Financial Solutions Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 10.43. This coverage rate is greater than that of 76.54% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 8. This value is greater than only 21.72% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BR, try DSGX, ASML, BKI, COHU, and QRTEA.
Broadridge Financial Solutions, Inc. (NYSE:BR) announced that Jim Young, Chief Financial Officer, will speak at the virtual Piper Sandler Global Exchange & FinTech Conference on June 4, 2020 at 12:00 PM EST. A link to the live webcast of the presentation will be available on the Company's Investor Relations home page at www.broadridge-ir.com.