CF Industries manufactures and distributes nitrogen and phosphate fertilizer products globally serving both agricultural and industrial customers. CF Industries Holdings, Inc. was founded in 1946 and is based in Deerfield, Illinois.
CF Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CF, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that CF Industries Holdings Inc ranked in the 80th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 475.83%. The most interesting components of our discounted cash flow analysis for CF Industries Holdings Inc ended up being:
CF Industries Holdings Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 7.92% of tickers in our DCF set.
Relative to other stocks in its sector (Basic Materials), CF Industries Holdings Inc has a reliance on debt greater than 66.35% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SUM, RS, BLD, ODC, and HDSN can be thought of as valuation peers to CF, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.