Neenah Paper produces image and performance-based products, including filtration, specialized substrates used for tapes, labels and other products, and high-end printing papers. The company was founded in 2004 and is based in Alpharetta, Georgia.
NP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for NP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Neenah Inc ranked in the 35th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for NP, they are:
Neenah Inc's weighted average cost of capital (WACC) is 10%; for context, that number is higher than 75.08% of tickers in our DCF set.
Neenah Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than 72.69% of stocks in its sector (Basic Materials).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
OEC, LYB, RPM, AWI, and SUZ can be thought of as valuation peers to NP, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
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