Leggett & Platt, Incorporated designs and produces various engineered components and products worldwide. The company operates through four segments: Residential Furnishings, Commercial Products, Industrial Materials, and Specialized Products. The company was founded in 1883 and is based in Carthage, Missouri. The company was founded in 1980 and is based in Los Angeles, California.
LEG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Leggett & Platt Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Leggett & Platt Inc ranked in the 55th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 17.67%. As for the metrics that stood out in our discounted cash flow analysis of Leggett & Platt Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 4.57; that's higher than 66.6% of US stocks in the Consumer Cyclical sector that have positive free cash flow.
Leggett & Platt Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 11.49% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as LEG, try FBHS, IP, TPX, ULTA, and KAR.
Exxon Mobil, AT&T, Caterpillar, Leggett & Platt, and Sysco didn’t increase their quarterly dividend payouts last year, but they remain Dividend Aristocrats for now because their 2020 payouts were higher than 2019.