Harvard Bioscience, Inc. develops, manufactures, and markets scientific instruments, systems, and lab consumables used in life science research. The company was founded in 1901 and is based in Holliston, Massachusetts.
HBIO 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 Harvard Bioscience Inc. To summarize, we found that Harvard Bioscience Inc ranked in the 38th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 34.5%. The most interesting components of our discounted cash flow analysis for Harvard Bioscience Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 64. Its equity weight surpasses that of just 17.02% of free cash flow generating stocks in the Healthcare sector.
Harvard Bioscience Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.54. This coverage rate is greater than that of merely 19.05% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BDX, SGRY, TARO, USPH, and ITGR can be thought of as valuation peers to HBIO, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
Jim Green, Chairman, President & Chief Executive Officer of Harvard Bioscience, Inc. (HBIO) (the “Company” or “Harvard Bioscience”), today issued a letter to shareholders updating them on the Company’s execution against the key strategic actions committed to in September 2019 to position Harvard Bioscience for long-term profitable growth. In addition, we expect to complete the streamlining of our UK operation next quarter.