NewMarket Corporation develops, manufactures, blends, and delivers chemical additives that enhance the performance of petroleum products. The company was founded in 1887 and is based in Richmond, Virginia.
NEU 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 Newmarket Corp. To summarize, we found that Newmarket Corp ranked in the 50th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for NEU, they are:
NEU'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 30.36% of tickers in our DCF set.
Newmarket Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 13.74. This coverage rate is greater than that of 82.08% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Basic Materials), Newmarket Corp has a reliance on debt greater than only 24.3% 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 Newmarket Corp? See CCF, SXT, GGB, LEU, and TSE.
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