MSC Industrial Direct Company, Inc. (MSM) Company Bio
MSC Industrial Direct is a North American distributor of metalworking and maintenance, repair, and operations (MRO) products and services. The company was founded in 1941 and is based in Melville, New York.
MSM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MSM, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Msc Industrial Direct Co Inc ranked in the 51th 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 Msc Industrial Direct Co Inc, consider:
MSM'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 31.09% of tickers in our DCF set.
Msc Industrial Direct Co Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 24.67. This coverage rate is greater than that of 88.5% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Msc Industrial Direct Co Inc experienced a tax rate of about 19% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than 78.8% of stocks generating free cash flow.
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 Msc Industrial Direct Co Inc? See HOLI, OSK, WTS, WWD, and ETN.
MELVILLE, N.Y. and DAVIDSON, N.C., May 12, 2020 /PRNewswire/ -- MSC INDUSTRIAL SUPPLY CO. (NYSE: MSM), a premier distributor of Metalworking and Maintenance, Repair and Operations (MRO) products and services to industrial customers throughout North America, today announced preliminary,…