Mueller Water Products is a manufacturer and marketer of products and services used in the transmission, distribution and measurement of water in North America. The product portfolio includes engineered valves, fire hydrants, metering products and systems, leak detection and pipe condition assessment. The company is founded in 1857 and is based in in Atlanta, Georgia.
MWA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Mueller Water Products Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Mueller Water Products Inc ranked in the 8th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 94%. The most interesting components of our discounted cash flow analysis for Mueller Water Products Inc ended up being:
The company's compound free cash flow growth rate over the past 5.75 years comes in at -0.19%; that's greater than merely 9.76% of US stocks we're applying DCF forecasting to.
The company has produced more trailing twelve month cash flow than only 23.92% of its sector Industrials.
Mueller Water Products Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 24.08% of tickers in our DCF set.
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 Mueller Water Products Inc? See MOG.A, SPAR, TRN, AAWW, and CPRT.
Thank you for joining us on Mueller Water Products second-quarter 2020 conference call. Scott Hall, our president and CEO; and Martie Zakas, our CFO, will be discussing the COVID-19 pandemic, our second quarter's results and current market conditions.