Griffon Corporation manufactures building products, specialty plastic films, and electronic information and communication systems. The Company's products include garage doors, materials for disposable diapers, disposable health-care products, sensor systems, and information and command and control systems. The company was founded in 1959 and is based in New York, New York.
GFF Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Griffon Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Griffon Corp ranked in the 23th 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. The most interesting components of our discounted cash flow analysis for Griffon Corp ended up being:
The company's compound free cash flow growth rate over the past 5.51 years comes in at -0.06%; that's greater than just 21.53% of US stocks we're applying DCF forecasting to.
30% of the company's capital comes from equity, which is greater than only 19.33% of stocks in our cash flow based forecasting set.
Relative to other stocks in its sector (Industrials), Griffon Corp has a reliance on debt greater than 82.54% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BDC, AXE, GGG, GNRC, and KNX can be thought of as valuation peers to GFF, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.