Below please find a table outlining a discounted cash flow forecast for LGL, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Lgl Group Inc ranked in the 70th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 197.17% on a DCF basis. The most interesting components of our discounted cash flow analysis for Lgl Group Inc ended up being:
LGL's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 59.3% of tickers in our DCF set.
Relative to other stocks in its sector (Technology), Lgl Group Inc has a reliance on debt greater than only 0% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
OPRA, NSIT, SONO, W, and UPLD can be thought of as valuation peers to LGL, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
(Source: Company website) LGL Group (LGL) gives investors multiple ways to win with limited downside risk. The company owns two profitable manufacturing subsidiaries that operate in a niche industry, $20 million in cash that is being managed by the Gabelli family, and a meaningful position in a newly formed SPAC...
Carleton Hanson on Seeking Alpha | August 18, 2020
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