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 39th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 27.67%. As for the metrics that stood out in our discounted cash flow analysis of C H Robinson Worldwide Inc, consider:
The company has produced more trailing twelve month cash flow than 79.93% 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 31.7% 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% 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
ATRO, CAT, CW, HEI, and RSG can be thought of as valuation peers to CHRW, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
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 […]
Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the first quarter. You can find articles about an individual hedge fund's trades on numerous financial […]