nVent Electric plc Ordinary Shares (NVT) Company Bio
nVent Electric has a leading portfolio of electrical enclosures, electric heat tracing solutions, complete heat management systems, and electrical and fastening solutions that connect and protect critical systems across the globe where the cost of failure is high. Its innovative electrical solutions help maximize customer efficiency, improve utilization, lower installation costs as well as the total cost of ownership and minimize downtime. The company was spun off from Pentair plc.
NVT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for NVT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that nVent Electric plc ranked in the 50th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 22% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for NVT, they are:
As a business, NVT is generating more cash flow than 68.3% of positive cash flow stocks in the Industrials.
nVent Electric plc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 14.95% of tickers in our DCF set.
nVent Electric plc's effective tax rate, as measured by taxes paid relative to net income, is at 18 -- greater than 70.33% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HY, PKOH, FWRD, HOLI, and HUBB can be thought of as valuation peers to NVT, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
nVent Electric plc (NYSE:NVT) ("nVent"), a global leader in electrical connection and protection solutions, today announced its participation in the 2020 RBC Capital Markets Global Industrials Virtual Conference on Monday, September 14, 2020. Beth Wozniak, chief executive officer, and Sara Zawoyski, executive vice president and chief financial officer, will present from 2:20 to 2:50 p.m. EDT.