LyondellBasell Industries NV Ordinary Shares Class A (Netherlands) (LYB) Company Bio
LyondellBasell Industries is one of the world's largest plastics, chemical and refining companies manufactures whose products and technologies are used in packaging, electronics, automotive parts, home furnishings, construction materials and biofuels. The company was founded in 2005 and is based in Rotterdam, the Netherlands.
LYB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for LyondellBasell Industries NV with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that LyondellBasell Industries NV 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 LyondellBasell Industries NV, consider:
In the past 5.58 years, LyondellBasell Industries NV has a compound free cash flow growth rate of -0.09%; that's better than only 19.43% of cash flow producing equities in the Basic Materials sector, where it is classified.
LyondellBasell Industries NV's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 5.95% of tickers in our DCF set.
LYB'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 just 5.95% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
KRO, SXC, NP, BHP, and PPG can be thought of as valuation peers to LYB, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.