Element Solutions Inc. (formerly Platform Specialty Products) is a global, diversified producer of high-technology specialty chemicals and provider of technical services. The business involves the formulation of a broad range of solutions-oriented specialty chemicals, which are sold into multiple industries, including agrochemical, animal health, electronics, graphic arts, plating, and offshore oil production and drilling. The company was founded in 1922 and is based in Miami, Florida.
ESI 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 Element Solutions Inc. To summarize, we found that Element Solutions Inc ranked in the 54th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Element Solutions Inc ended up being:
As a business, ESI is generating more cash flow than 55.29% of positive cash flow stocks in the Basic Materials.
The business' balance sheet reveals debt to be 30% of the company's capital (with equity being the remaining amount). Approximately 58.19% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Element Solutions Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
RGLD, NTIC, EMN, KOP, and PVG can be thought of as valuation peers to ESI, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
Element Solutions (ESI) acquires DMP Corporation for undisclosed terms.DMP Corporation is a provider of turnkey wastewater treatment and recycle and reuse solutions across multiple manufacturing industries.In addition, company formed MacDermid Envio Solutions, a new business focused on helping customers profitably reduce their environmental impact through proprietary water treatment and metals...
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