Knight-Swift Transportation Holdings Inc. (KNX) Company Bio
Knight Transportation is a provider of multiple truckload transportation services using a nationwide network of service centers in the U.S. to serve customers throughout North America. The company was founded in 1989 and is based in Phoenix, Arizona.
KNX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for KNX, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Knight-Swift Transportation Holdings Inc ranked in the 22th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 57%. The most interesting components of our discounted cash flow analysis for Knight-Swift Transportation Holdings Inc ended up being:
KNX'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 35.62% of tickers in our DCF set.
Knight-Swift Transportation Holdings Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 15.03. This coverage rate is greater than that of 80.65% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Knight-Swift Transportation Holdings Inc experienced a tax rate of about 19% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than 77.63% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PTSI, ENG, GNRC, SPAR, and AEGN can be thought of as valuation peers to KNX, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.