Littelfuse Inc. serves customers in the electronics, automotive and industrial markets with technologies including fuses, semiconductors, polymers, ceramics, relays and sensors. The company was founded in 1927 and is based in Chicago, Illinois.
LFUS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Littelfuse Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Littelfuse Inc ranked in the 45th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Littelfuse Inc, consider:
83% of the company's capital comes from equity, which is greater than 68.26% of stocks in our cash flow based forecasting set.
Littelfuse Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 8.45. This coverage rate is greater than that of 68.92% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 7. This value is greater than just 17.87% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as LFUS, try ARW, RMBS, SYNA, TTLO, and CTSH.