Manpower Group Inc. provides workforce solutions and services in the Americas, Southern Europe, Northern Europe, and the Asia Pacific Middle East region. The companys recruitment service portfolio includes permanent, temporary, and contract recruitment of professionals, as well as administrative and industrial positions. The company was founded in 1948 and is based in Milwaukee, Wisconsin.
MAN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MAN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that ManpowerGroup Inc ranked in the 77th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 398.67% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of ManpowerGroup Inc, consider:
The company has produced more trailing twelve month cash flow than 86.51% of its sector Industrials.
ManpowerGroup Inc's effective tax rate, as measured by taxes paid relative to net income, is at 28 -- greater than 89.14% of US stocks with positive free cash flow.
ManpowerGroup Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -16.53. This coverage rate is greater than that of just 6.55% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as MAN, try TBI, ASR, GFN, WSC, and TAYD.
Credit Suisse sizes up ManpowerGroup ([[MAN]] +3.3%) after the company reintroduced guidance, but suggested on the earnings call that global labor market improvement will likely be slow."We believe that Q2 could be the bottom as European economies reopen as COVID-19 containment measures ease. Further, normalizing trends—especially in France + Italy...