Gerdau S.A. produces and commercializes steel products worldwide for use in manufacturing, construction, and agricultural industries. The company was founded in 1901 and is based in Porto Alegre, Brazil.
GGB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Gerdau Sa with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Gerdau Sa ranked in the 15th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Gerdau Sa, consider:
The company's compound free cash flow growth rate over the past 4 years comes in at -0.34%; that's greater than merely 4.38% of US stocks we're applying DCF forecasting to.
As a business, GGB is generating more cash flow than 84.7% of positive cash flow stocks in the Basic Materials.
Gerdau Sa's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 17.82% 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 Gerdau Sa? See APD, USAP, KGC, LYB, and SQM.
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