Kraton Performance Polymers is a leading global producer of engineered polymers and styrenic block copolymers (SBCs). The company was founded in 2009 and is based in Houston, Texas.
KRA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for KRA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Kraton Corp ranked in the 84th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 893.83% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Kraton Corp, consider:
45% of the company's capital comes from equity, which is greater than merely 20.37% of stocks in our cash flow based forecasting set.
Kraton Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -3.51. This coverage rate is greater than that of merely 14.81% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 14. This value is greater than 94.34% stocks in the Basic Materials sector that generate 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 KRA, try CLW, NX, UNVR, USCR, and PGTI.
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HOUSTON, Sept. 9, 2020 /PRNewswire/ -- Kraton Corporation (NYSE: KRA), a leading global producer of specialty polymers and high-value biobased products derived from pine wood pulping co-products, is seeking regulatory approval for BIAXAM, a novel sulfonated polymer technology with…
With me on the call this morning are Kevin Fogarty, Kraton's President and Chief Executive Officer; and Atanas Atanasov, Kraton's Executive Vice President and Chief Financial Officer. A copy of our second quarter news release and the related presentation material we will review this morning is available in the Investor Relations section of our website.
HOUSTON, July 30, 2020 /PRNewswire/ -- Kraton Corporation (NYSE: KRA), a leading global producer of specialty polymers and high-value biobased products derived from pine wood pulping co-products, today announced that it will participate in the Jefferies Virtual Industrials Conference on…