Masco Corporation manufactures, distributes, and installs home improvement and building products worldwide. The Company's segments include Cabinets and Related Products, Plumbing Products, Installation and Other Services, Decorative Architectural Products and Other Specialty Products. The company was founded in 1929 and is based in Taylor, Michigan.
MAS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Masco Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Masco Corp ranked in the 39th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Masco Corp ended up being:
Masco Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 8.33. This coverage rate is greater than that of 69.33% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 22.78% of stocks in its sector (Basic Materials).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Masco Corp? See PPG, SCL, SHW, CINR, and FSI.