Lamb Weston is a world leading brand in high quality potato products, and is sold in over 100 countries around the world. In a collaboration between with ConAgra Foods Lamb Weston and Lamb Weston / Meijer. The company Lamb Weston / Meijer serves the EMEA region and is based in The Netherlands. Supplying frozen potato products like Twisters, Potato Dippers and Connoisseur Fries as well as dehydrated potato flakes to customers in the Foodservice, Quick Service, Industry and Retail segments.
LW Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for LW, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Lamb Weston Holdings Inc ranked in the 37th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for LW, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 5.43 -- which is good for besting 54.2% of its peer stocks (US stocks in the Consumer Defensive sector with positive cash flow).
Lamb Weston Holdings Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 14.27% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CHD, RAD, DL, CLX, and KMB can be thought of as valuation peers to LW, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
The Board of Directors of Lamb Weston Holdings, Inc. (NYSE:LW) today declared a quarterly dividend of $0.23 per share of Lamb Weston common stock. The dividend is payable on Dec. 4, 2020 to stockholders of record at the close of business on Nov. 6, 2020.