Darling Ingredients is the world's largest publicly-traded developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of ingredients and specialty products for customers in the pharmaceutical, food, pet food, feed, technical, fuel, bioenergy, and fertilizer industries. The company was founded in 1882 and is based in Irving, Texas.
DAR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Darling Ingredients Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Darling Ingredients Inc ranked in the 7th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Darling Ingredients Inc, consider:
Its compound free cash flow growth rate, as measured over the past 5.31 years, is -0.1% -- higher than just 17.27% of stocks in our DCF forecasting set.
The weighted average cost of capital for the company is 6. This value is greater than only 11.21% stocks in the Consumer Defensive sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
LND, PSMT, MGPI, BGS, and COE can be thought of as valuation peers to DAR, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.