Cincinnati Bell provides diversified telecommunications and technology services primarily in Greater Cincinnati and Dayton, Ohio areas. The company was founded in 1873 and is based in Cincinnati, Ohio.
CBB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CBB, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Cincinnati Bell Inc ranked in the 31th 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 Cincinnati Bell Inc ended up being:
The company has produced more trailing twelve month cash flow than only 13.77% of its sector Communication Services.
27% of the company's capital comes from equity, which is greater than only 16.24% of stocks in our cash flow based forecasting set.
Cincinnati Bell Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 0.45. This coverage rate is greater than that of merely 20.45% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Communication Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CBB, try OTEL, TDS, CCOI, TSU, and CABO.