Seacor Holdings owns, operates, invests, and markets equipment in the offshore oil and gas, shipping, and logistics industries. The company was founded in 1989 and is based in Fort Lauderdale, Florida.
CKH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Seacor Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Seacor Holdings Inc ranked in the 62th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 149% on a DCF basis. The most interesting components of our discounted cash flow analysis for Seacor Holdings Inc ended up being:
The company's balance sheet shows it gets 54% of its capital from equity, and 46% of its capital from debt. Its equity weight surpasses that of 66.97% of free cash flow generating stocks in the Energy sector.
The business' balance sheet reveals debt to be 46% of the company's capital (with equity being the remaining amount). Approximately 64.46% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
CKH's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 5%; for context, that number is higher than 36.67% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SHI, CLR, VLO, NINE, and KMI can be thought of as valuation peers to CKH, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.