Cooper Tire & Rubber is the parent company of a global family of companies that specializes in the design, manufacture, marketing and sale of passenger car and light truck tires. The company was founded in 1913 and is based in Findlay, Ohio.
CTB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CTB, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Cooper Tire & Rubber Co ranked in the 75th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for CTB, they are:
The company has produced more trailing twelve month cash flow than 69.7% of its sector Consumer Cyclical.
Cooper Tire & Rubber Co's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 20.88% of tickers in our DCF set.
Cooper Tire & Rubber Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 8.6. This coverage rate is greater than that of 73.69% 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 Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CTB, try YETI, CROX, BERY, HBI, and LEE.
FINDLAY, Ohio--(BUSINESS WIRE)--The Board of Directors of Cooper Tire & Rubber Company (NYSE: CTB) has named Tyrone Michael (T.J.) Jordan a director of the company effective January 10. Jordan is the former President and Chief Operating Officer of DURA Automotive Systems, a leading tier one automotive supplier of electric/hybrid systems, advanced driver-assistance systems, mechatronics, lightweight structural systems, and luxury trim systems for premier automotive brands. In this role he wa