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:
Below please find a table outlining a discounted cash flow forecast for LEG, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Leggett & Platt Inc ranked in the 67th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for LEG, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 57. Its equity weight surpasses that of 59.67% of free cash flow generating stocks in the Consumer Cyclical sector.
Leggett & Platt Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 12.19% 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 ALSN, LEA, ARKR, KAR, and THRM.