CH Robinson Worldwide provides freight transportation services and logistics solutions to companies in various industries worldwide. The company was founded in 1905 and is based in Eden Prairie, Minnesota.
CHRW Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for C H Robinson Worldwide Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that C H Robinson Worldwide Inc ranked in the 36th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for CHRW, they are:
The company has produced more trailing twelve month cash flow than 80.2% of its sector Industrials.
CHRW'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 32.44% of tickers in our DCF set.
C H Robinson Worldwide Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 14.73. This coverage rate is greater than that of 83.03% 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 Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CHRW, try EMR, CP, RRD, MNTX, and MSA.
If you are looking for the best ideas for your portfolio you may want to consider some of Wedgewood Partners top stock picks. Wedgewood Partners, an investment management firm, is bearish on C. H. Robinson Worldwide Inc. (NASDAQ:CHRW) stock. In its Q4 2019 investor letter – you can download a copy here – the firm […]
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