Church & Dwight develops, manufactures, and markets household, personal care, and specialty products. The company was founded in 1846 and is based in Ewing, New Jersey.
CHD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Church & Dwight Co Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Church & Dwight Co Inc ranked in the 38th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 32.33%. As for the metrics that stood out in our discounted cash flow analysis of Church & Dwight Co Inc, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 15.99 -- which is good for besting 81.44% of its peer stocks (US stocks in the Consumer Defensive sector with positive cash flow).
The business' balance sheet suggests that 8% of the company's capital is sourced from debt; this is greater than merely 20.32% of the free cash flow producing stocks we're observing.
CHD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 39.27% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
COST, INGR, MDLZ, K, and WMT can be thought of as valuation peers to CHD, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
EWING, N.J.--(BUSINESS WIRE)--Church & Dwight Co., Inc. (NYSE:CHD) will host a conference call to discuss third quarter 2020 earnings results on October 29, 2020 at 10:00 a.m. Eastern time. To participate, dial 877-322-9846 within the U.S. and Canada, or 631-291-4539 internationally, using access code 9285485. A replay will be available at 855-859-2056 using the same access code. You also can participate via webcast by visiting the Investor Relations section of the Company’s website. Church
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