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:
We started the process of determining a valid price forecast for Nordson Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Nordson Corp ranked in the 32th 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 Nordson Corp ended up being:
87% of the company's capital comes from equity, which is greater than 74.61% of stocks in our cash flow based forecasting set.
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 41.94% of tickers in our DCF set.
Relative to other stocks in its sector (Industrials), Nordson Corp has a reliance on debt greater than merely 21.34% of them.
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 CODI, EMR, FAST, GWW, and CAT.