GMS Inc. distributes gypsum wallboard, acoustical ceiling products, and other specialty building materials to the interior contractors of commercial and residential buildings in North America. The company was founded in 1971 and is based Tucker, Georgia.
GMS 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 GMS Inc. To summarize, we found that GMS Inc ranked in the 90th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 2012.33% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for GMS, they are:
The company's balance sheet shows it gets 45% of its capital from equity, and 55% of its capital from debt. Notably, its equity weight is greater than just 18.51% of US equities in the Basic Materials sector yielding a positive free cash flow.
The company's compound free cash flow growth rate over the past 3.96 years comes in at 0.55%; that's greater than 83.62% of US stocks we're applying DCF forecasting to.
The business' balance sheet reveals debt to be 55% of the company's capital (with equity being the remaining amount). Approximately 74.19% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as GMS, try ZEUS, FRTA, CF, UNVR, and BLDR.
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