Koppers Holdings Inc. Koppers Holdings Inc. (KOP) Company Bio
Koppers Holdings Inc. provides carbon compounds, wood treatment chemicals, and treated wood products and services in the United States and internationally. The company operates through three segments: Railroad and Utility Products and Services (RUPS), Carbon Materials and Chemicals (CMC), and Performance Chemicals (PC). The company was founded in 1988 and is based in Pittsburgh, Pennsylvania.
KOP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for KOP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Koppers Holdings Inc ranked in the 75th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 393.83%. The most interesting components of our discounted cash flow analysis for Koppers Holdings Inc ended up being:
18% of the company's capital comes from equity, which is greater than just 10.18% of stocks in our cash flow based forecasting set.
The business' balance sheet suggests that 82% of the company's capital is sourced from debt; this is greater than 89.78% of the free cash flow producing stocks we're observing.
As a business, Koppers Holdings Inc experienced a tax rate of about 1% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than merely 19.32% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as KOP, try ARLP, CX, BCC, XPEL, and HUN.