Below please find a table outlining a discounted cash flow forecast for LEU, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Centrus Energy Corp ranked in the 76th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 447%. The most interesting components of our discounted cash flow analysis for Centrus Energy Corp ended up being:
In the past 4.74 years, Centrus Energy Corp has a compound free cash flow growth rate of -0.07%; that's better than only 16.28% of cash flow producing equities in the Basic Materials sector, where it is classified.
42% of the company's capital comes from equity, which is greater than only 22.72% of stocks in our cash flow based forecasting set.
Centrus Energy Corp's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 0.74% of tickers in our DCF set.
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 LEU, try BCC, PATK, UFPI, KALU, and WMS.
Centrus Energy ([[LEU]] +13.2%) shoots higher after teaming with TerraPower to establish commercial-scale, domestic production capabilities for high-assay, low-enriched uranium to fuel many next-generation reactor designs including the recently announced Natrium Power Storage System designed by TerraPower and GE Hitachi.Centrus is working under a $115M cost-shared contract with the U.S....
BELLEVUE, Wash., and BETHESDA, Md., Sept. 15, 2020 /PRNewswire/ -- TerraPower announced today its plans to team with Centrus Energy Corp. (NYSE American: LEU) to establish commercial-scale, domestic production capabilities for high-assay, low-enriched uranium (HALEU), which will be needed…
Centrus Energy (LEU) prices the public offering of 2.35M shares of its Class A Common Stock, at a price of $10 per share.Underwriters option to purchase up to an additional 352,500 shares.Proceeds are expected to be $21.5M and to be used for general working capital purposes, to invest in technology development, and to...
BETHESDA, Md., Aug. 21, 2020 /PRNewswire/ -- Centrus Energy Corp. (NYSE American: LEU) today announced the pricing of an underwritten public offering of 2,350,000 shares of its Class A Common Stock, at a public offering price of $10.00 per share of Class A Common Stock. In addition,…