Dover Corporation delivers equipment and components, specialty systems and support services through four major operating segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment. The company was founded in 1947 and is based in Downers Grove, Illinois.
DOV Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for DOVER Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that DOVER Corp ranked in the 30th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for DOVER Corp ended up being:
DOV'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 25.72% of tickers in our DCF set.
The weighted average cost of capital for the company is 8. This value is greater than only 23.89% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
EMR, CMI, GTES, GWW, and MSA can be thought of as valuation peers to DOV, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Following Dover's (DOV) virtual investor meeting, which disclosed some encouraging progress within Pumps & Process Solutions (specifically Biopharma), I think DOV shares are at least worth considering as a recovery play. Some notable growth drivers include its exposure to faster-growing end markets, along with its M&A success. On the latter...
Opal Investment Research on Seeking Alpha | September 30, 2020
The Stock Price Is Unlikely To Increase Soon Source Dover Corporation (DOV) has various moving pieces, none of which is strong enough to signal a clear direction for the stock price in the short term. The pandemic has undoubtedly created a demand vacuum in the industrial space, and the adverse...
Badsha Chowdhury on Seeking Alpha | September 23, 2020
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