SPX FLOW, Inc. provides engineered flow components, process equipment, turn-key systems, and related aftermarket parts and services worldwide. It operates through three segments: Food and Beverage, Power and Energy, and Industrial. The company is based in Charlotte, North Carolina.
FLOW 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 SPX FLOW Inc. To summarize, we found that SPX FLOW Inc ranked in the 17th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 67.5%. The most interesting components of our discounted cash flow analysis for SPX FLOW Inc ended up being:
The company's compound free cash flow growth rate over the past 4.77 years comes in at -0.12%; that's greater than just 15.8% of US stocks we're applying DCF forecasting to.
SPX FLOW Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.23. This coverage rate is greater than that of just 13.29% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, SPX FLOW Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than only 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
RGR, TTC, WLDN, ZTO, and AEGN can be thought of as valuation peers to FLOW, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.