Nordson Corporation engineers, manufactures and markets differentiated products and systems used for the precision dispensing of adhesives, coatings, sealants, biomaterials, polymers, plastics and other materials, fluid management, test and inspection, UV curing and plasma surface treatment, serving a wide variety of consumer non-durable, durable and technology end markets including packaging, nonwovens, electronics, medical, appliances, energy, transportation, construction, and general product assembly and finishing. The company was founded in 1935 and is based in Westlake, Ohio.
NDSN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for NDSN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Nordson Corp ranked in the 30th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 50.67%. The most interesting components of our discounted cash flow analysis for Nordson Corp ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 12.1; that's higher than 79.04% of US stocks in the Industrials sector that have positive free cash flow.
The business' balance sheet suggests that 11% of the company's capital is sourced from debt; this is greater than just 24.79% of the free cash flow producing stocks we're observing.
NDSN'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 34.81% 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 Nordson Corp? See GWW, MSA, DOV, EMR, and CMI.
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