Genuine Parts is a distributor of automotive replacement parts and accessories in the U.S., Canada, Mexico and Australasia. The Company also distributes industrial replacement parts in the U.S., Canada and Mexico through its Motion Industries subsidiary. The company was founded in 1928 and is based in Atlanta, Georgia.
GPC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for GPC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Genuine Parts Co ranked in the 53th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for GPC, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 77. Notably, its equity weight is greater than 72.19% of US equities in the Consumer Cyclical sector yielding a positive free cash flow.
Genuine Parts Co's effective tax rate, as measured by taxes paid relative to net income, is at 68 -- greater than 95.57% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
GES, CAL, ELY, GFASY, and CMCSA can be thought of as valuation peers to GPC, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Genuine Parts Co (GPC) Q2 2020 Earnings Conference Call July 30, 2020, 11:00 ET Company Participants Sidney Jones - SVP, IR Paul Donahue - Chairman & CEO Carol Yancey - EVP, CFO & CAO Conference Call Participants Mark Jordan - Jefferies Michael Montani - Evercore ISI Daniel Imbro - Stephens...
ATLANTA, July 30, 2020 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC) announced today its results for the second quarter and six months ended June 30, 2020. For the periods presented, the Company's Business Products segment, sold on June 30, 2020, has been classified as Discontinued…