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:
Below please find a table outlining a discounted cash flow forecast for BV, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that BrightView Holdings Inc ranked in the 37th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 31.33%. In terms of the factors that were most noteworthy in this DCF analysis for BV, they are:
The business' balance sheet reveals debt to be 48% of the company's capital (with equity being the remaining amount). Approximately 67.33% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
BrightView Holdings Inc's weighted average cost of capital (WACC) is 10%; for context, that number is higher than 73.94% of tickers in our DCF set.
As a business, BrightView Holdings Inc experienced a tax rate of about 5% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than merely 21.67% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CHRW, HEI, LHX, TRNS, and CHRA 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.