Donaldson Company manufactures and sell filtration systems and replacement parts. The company operates through two segments, Engine Products and Industrial Products. The company was founded in 1915 and is based in Minneapolis, Minnesota.
DCI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Donaldson Co Inc. To summarize, we found that Donaldson Co Inc ranked in the 33th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 45.33%. In terms of the factors that were most noteworthy in this DCF analysis for DCI, they are:
Interest coverage, a measure of earnings relative to interest payments, is 20.26; that's higher than 88.96% of US stocks in the Industrials sector that have positive free cash flow.
The business' balance sheet suggests that 10% of the company's capital is sourced from debt; this is greater than merely 22.66% of the free cash flow producing stocks we're observing.
DCI's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 37.05% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HON, WM, KNX, PATI, and TXT can be thought of as valuation peers to DCI, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
MINNEAPOLIS--(BUSINESS WIRE)---- $DCI--Donaldson Company, Inc. (NYSE: DCI), a leading worldwide provider of innovative filtration products and solutions, today announced that members of its management team will participate in a fireside chat and investor meetings at Morgan Stanley’s virtual 8th annual Laguna Conference on Wednesday, September 16. The fireside chat will begin at approximately 12:45 p.m. EDT. WEBCAST: To listen to a live webcast of the fireside chat, visit the “Events & Presentations”