Cabot Corporation is a leading provider of rubber and specialty carbons, activated carbon, inkjet colorants, cesium formate drilling fluids, fumed silica, and aerogel. The company was founded in 1882 and is based in Boston, Massachusetts.
CBT 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 Cabot Corp. To summarize, we found that Cabot Corp ranked in the 19th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Cabot Corp ended up being:
The company's compound free cash flow growth rate over the past 5.56 years comes in at -0.08%; that's greater than merely 15.62% of US stocks we're applying DCF forecasting to.
Cabot Corp's effective tax rate, as measured by taxes paid relative to net income, is at 97 -- greater than 97.08% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 12. This value is greater than 82.43% stocks in the Basic Materials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CBT, try ECL, KRO, TORM, WDFC, and AVNT.
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Cabot Corporation (NYSE: CBT) has received a platinum level rating in recognition of its sustainability efforts from EcoVadis. The platinum rating, which was established in 2020, confirms that Cabot is ranked among the top 1% of companies in its peer group in the manufacturing of Basic Chemicals. Cabot had received a gold rating the previous four years. Gold is awarded to companies that score in the top 5% of companies evaluated.
Cabot Corporation (NYSE: CBT) announced the upcoming retirement of Mark S. Wrighton from its Board of Directors. Mr. Wrighton, who has served as a director of Cabot since 1997, is retiring from the Board when his current term of office expires effective at Cabot’s Annual Meeting of Stockholders to be held on March 11, 2021. He currently serves as a member of the Compensation Committee and during his tenure on Cabot’s Board, Mr. Wrighton has also served on the Board’s Safety, Health, Environment and Sustainability Committee.