W.R. Grace is a supplier of catalysts; engineered and packaging materials; and specialty construction chemicals and building materials. The company was founded in 1854 and is based in Columbia, Maryland.
GRA 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 W R Grace & Co. To summarize, we found that W R Grace & Co ranked in the 17th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 78.83%. In terms of the factors that were most noteworthy in this DCF analysis for GRA, they are:
Its compound free cash flow growth rate, as measured over the past 4.5 years, is -0.1% -- higher than only 14.07% of stocks in our DCF forecasting set.
W R Grace & Co's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 10. This value is greater than 70.76% stocks in the Basic Materials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ACH, ECL, LYB, GOLD, and KRO can be thought of as valuation peers to GRA, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
W. R. Grace & Co. (GRA) Q2 2020 Earnings Conference Call July 30, 2020 09:00 AM ET Company Participants Jeremy Rohen - Vice President, Investor Relations Hudson La Force - President and Chief Executive Officer Bill Dockman - Senior Vice President and Chief Financial Officer Conference Call Participants Kevin McCarthy...
W.R. Grace (GRA): Q2 Non-GAAP EPS of $0.49 beats by $0.02; GAAP EPS of -$0.11 misses by $0.61.Revenue of $418.7M (-18.5% Y/Y) beats by $25.21M.Adjusted free cash flow increases 61% to $109.7M.Press Release...
Image source: The Motley Fool. W R Grace & Co (New) (NYSE: GRA)Q2 2020 Earnings CallJul 30, 2020, 9:00 a.m. ETContents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: OperatorLadies and gentlemen, thank you for standing by, and welcome to the W.