Meritor Inc. is a leading global supplier of drivetrain, mobility, braking and aftermarket solutions for commercial vehicle and industrial markets. The company was founded in 1921 and is based in Troy, Michigan.
MTOR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Meritor Inc. To summarize, we found that Meritor Inc ranked in the 49th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 11% on a DCF basis. The most interesting components of our discounted cash flow analysis for Meritor Inc ended up being:
Meritor Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 4.91% of tickers in our DCF set.
Meritor Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 7.11. This coverage rate is greater than that of 71.07% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Meritor Inc experienced a tax rate of about 17% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 55.42% 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 Meritor Inc? See GPC, FL, CMPR, HMTV, and KAR.
TROY, Mich., Aug. 12, 2020 /PRNewswire/ -- Meritor, Inc. (NYSE: MTOR) today announced additional enhancements to MeritorPartsXpress.com that streamline the ordering process and self-service tools. The site improvements create a customized, quick and informative experience for each user…
TROY, Mich., July 30, 2020 /PRNewswire/ -- Meritor, Inc. (NYSE: MTOR) today celebrated the production of its 100-millionth brake shoe at its Plainfield, Ind. manufacturing facility. The plant, which opened in 1999, remanufactures and manufactures new brake components and plays a major…
Meritor Inc. (NYSE: MTOR ) reported coronavirus pandemic-impacted losses in its fiscal third quarter despite layoffs and pay cuts. The supplier of commercial vehicle and industrial drivetrains, as well as mobility, braking and aftermarket components lost $36 million, or 50 cents per diluted share, in the April-June period. That compared to income of $86 million, or $1 per diluted share, in the same quarter of 2019. The adjusted loss from continuing operations was $34 million, or a loss of 47 cents per adjusted diluted share. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $7 million, a 1.4% margin of sales compared to a 12.5% margin a year ago. Meritor posted sales of $514 million, down $652 million, or approximately 56%, from the same period last y...