BrightView Holdings provides commercial landscape maintenance services in the United States. The company’s landscape maintenance services include lawn care, flower bed planting and care, tree and shrub pruning, leaf removal, grass mowing, bed edging, planting of grass, groundcovers, grading, weed and pest control, irrigation maintenance, fertilization, and mulching. It also provides snow removal services to its landscape maintenance customers. In addition, the company offers landscape design/build services. It serves various regional and national property owners and managers of office parks, hotels, corporate facilities, retail centers, industrial sites, schools and universities, hospitals, professionally-managed residential properties, municipal facilities, cemeteries, and sports facilities. The company was formerly known as The Brickman Group, Ltd. The company was founded in 1939 and is based in Rockville, Maryland. BrightView Landscapes, LLC is a subsidiary of Brickman Group Holdings, Inc.
BV 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 BrightView Holdings Inc. To summarize, we found that BrightView Holdings Inc ranked in the 68th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 122.17% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of BrightView Holdings Inc, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 57. Notably, its equity weight is greater than merely 24.76% of US equities in the Industrials sector yielding a positive free cash flow.
BrightView Holdings Inc's weighted average cost of capital (WACC) is 13%; for context, that number is higher than 87.72% of tickers in our DCF set.
BrightView Holdings Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
NES, STCN, ICFI, LII, and BCO can be thought of as valuation peers to BV, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Over the past three months, shares of BrightView Holdings (NYSE:BV) increased by 17.74%. Before having a look at the importance of debt, let us look at how much debt BrightView Holdings has.BrightView Holdings's Debt Based on BrightView Holdings's financial statement as of November 18, 2020, long-term debt is at $1.13 billion and current debt is at $12.30 million, amounting to $1.14 billion in total debt. Adjusted for $157.10 million in cash-equivalents, the company's net debt is at $982.70 million.Let's define some of the terms we used in the paragraph above. Current debt is the portion of a company's debt which is due within 1 year, while long-term debt is the portion due in more than 1 year. Cash equivalents include cash and any liquid securities with maturity periods of 90 days or l...
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