Copart Inc. provides vehicle sellers with a full range of remarketing services and online auctions to process and sell salvage and clean title vehicles to dealers, dismantlers, rebuilders, exporters and, in some states, to end users. The company was founded in 1982 and is based in Dallas, Texas.
CPRT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CPRT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Copart Inc ranked in the 19th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 75.33%. The most interesting components of our discounted cash flow analysis for Copart Inc ended up being:
The business' balance sheet reveals debt to be 3% of the company's capital (with equity being the remaining amount). Approximately only 10.47% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
CPRT's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 57.72% of tickers in our DCF set.
As a business, Copart Inc experienced a tax rate of about 7% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than merely 23.22% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DE, EEX, DCI, LHX, and QUAD can be thought of as valuation peers to CPRT, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.