ICON Public Limited Company provides outsourced development services to the pharmaceutical, biotechnology, and medical device industries in Ireland, rest of Europe, the United States, and internationally. The company was founded in 1990 and is based in Dublin, Ireland.
ICLR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Icon Plc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Icon Plc ranked in the 46th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for ICLR, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 33.02 -- which is good for besting 89.71% of its peer stocks (US stocks in the Healthcare sector with positive cash flow).
The business' balance sheet suggests that 5% of the company's capital is sourced from debt; this is greater than only 12.68% of the free cash flow producing stocks we're observing.
ICLR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 50.62% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ICLR, try STAA, ADMT, CRL, DGX, and HSIC.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of ICON Plc and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.