Dana Incorporated is a supplier of highly engineered driveline, sealing, and thermal-management technologies that improve the efficiency and performance of vehicles with both conventional and alternative-energy powertrains. The company was founded in 1904 and is based in Maumee, Ohio.
DAN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Dana Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Dana Inc ranked in the 33th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for DAN, they are:
The company's compound free cash flow growth rate over the past 5.77 years comes in at -0.08%; that's greater than only 18.35% of US stocks we're applying DCF forecasting to.
Dana Inc'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.
The weighted average cost of capital for the company is 8. This value is greater than 65.62% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DECK, AMC, INTG, RH, and PSO can be thought of as valuation peers to DAN, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Dana Incorporated (NYSE: DAN) announced today it will present at the Deutsche Bank Global Automotive Industry Conference on June 10, 2020. Beginning at 1:05 p.m. EDT, Dana's Chairman and Chief Executive Officer James Kamsickas and Dana's Executive Vice President and Chief Financial Officer Jonathan Collins will provide a brief overview of the company and answer questions for approximately 35 minutes.