ESCO Technologies provides engineered filtration products to the aviation, space and process markets worldwide and is the industry leader in RF shielding and EMC test products. In addition, the Company provides diagnostic instruments, services, and the world's premier library of statistically significant apparatus test results for the benefit of energy generation, transmission, and delivery companies and industrial power users worldwide. The company was founded in 1990 and is based in St. Louis, Missouri.
ESE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ESE, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Esco Technologies Inc ranked in the 17th 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. As for the metrics that stood out in our discounted cash flow analysis of Esco Technologies Inc, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 19.97; that's higher than 79.59% of US stocks in the Technology sector that have positive free cash flow.
The business' balance sheet reveals debt to be 8% of the company's capital (with equity being the remaining amount). Approximately only 17.34% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
ESE'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 51.68% of tickers in our DCF set.
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 Esco Technologies Inc? See CTXS, EVER, WSTG, ANSS, and BRKS.