LB Foster manufactures, fabricates, and distributes products and services for the rail, construction, energy, and utility markets worldwide. The company was founded in 1902 and is based in Pittsburgh, Pennsylvania.
FSTR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for FSTR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Foster L B Co ranked in the 49th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 35.5%. The most interesting components of our discounted cash flow analysis for Foster L B Co ended up being:
Its compound free cash flow growth rate, as measured over the past 5.57 years, is -0.07% -- higher than only 19.73% of stocks in our DCF forecasting set.
As a business, FSTR is generating more cash flow than merely 19.39% of positive cash flow stocks in the Industrials.
Foster L B Co's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 16.38% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as FSTR, try ACM, RXN, AOS, GRAM, and CLCT.