Covanta Holding Corporation provides waste and energy services to municipal entities primarily worldwide. It owns and operates infrastructure for the conversion of waste to energy, as well as engages in other waste disposal and renewable energy production businesses. The company was founded in 1960 and is based in Morristown, New Jersey.
CVA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Covanta Holding Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Covanta Holding Corp ranked in the 18th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Covanta Holding Corp ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 0.71; that's higher than just 23.87% of US stocks in the Industrials sector that have positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 5.75 years, is -0.07% -- higher than only 19.27% of stocks in our DCF forecasting set.
Covanta Holding Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CVA, try NSSC, SPR, TXT, STCN, and ACM.
Covanta Holding Corporation (NYSE: CVA) ("Covanta" or the "Company"), a world leader in sustainable waste management and renewable energy, is scheduled to participate in the following virtual institutional investor conferences in June:
DUBLIN, May 19, 2020 /PRNewswire/ -- The "Intelligent Waste Management Systems Market" report has been added to ResearchAndMarkets.com's offering. The report includes: An overview of the global market for Intelligent Waste Management Systems (IWMS) Analyses of market trends, with data…
Covanta Holding Corporation (NYSE: CVA) ("Covanta") today announced that the Board of Directors has declared a quarterly cash dividend of $0.08 per share, payable on July 10, 2020 to stockholders of record as of the close of business on June 26, 2020.