Celestica provides supply chain solutions to customers in the communications, consumer, industrial, aerospace and defense, healthcare, solar, green technology, semiconductor equipment, servers, and storage end markets in the Americas, Asia, and Europe. The company was founded in 1996 and is based in Toronto, Canada.
CLS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Celestica Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Celestica Inc ranked in the 85th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 764.33%. In terms of the factors that were most noteworthy in this DCF analysis for CLS, they are:
The company's balance sheet shows it gets 57% of its capital from equity, and 43% of its capital from debt. Notably, its equity weight is greater than just 9.41% of US equities in the Technology sector yielding a positive free cash flow.
Celestica Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 15.5% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CTG, PFPT, TKAT, SMCI, and DXC can be thought of as valuation peers to CLS, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
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