EnerSys manufactures and distributes reserve power and motive power batteries, battery chargers, power equipment, battery accessories and outdoor equipment enclosure solutions to customers worldwide. The company was founded in 1999 and is based in Reading, Pennsylvania.
ENS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ENS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that EnerSys ranked in the 32th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 21.83%. The most interesting components of our discounted cash flow analysis for EnerSys ended up being:
The business' balance sheet suggests that 37% of the company's capital is sourced from debt; this is greater than 54.81% of the free cash flow producing stocks we're observing.
EnerSys's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 15.67% of tickers in our DCF set.
As a business, EnerSys experienced a tax rate of about 3% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than only 19.9% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of EnerSys? See TTEK, CODA, FAST, TISI, and ITW.