Newell Brands manufactures and markets consumer and commercial products worldwide. It operates through five segments: Writing, Home Solutions, Tools, Commercial Products, and Baby & Parenting. The company was founded in 1903 and is based in Atlanta, Georgia.
NWL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Newell Brands Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Newell Brands Inc ranked in the 50th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 10.17%. The most interesting components of our discounted cash flow analysis for Newell Brands Inc ended up being:
The company's balance sheet shows it gets 52% of its capital from equity, and 48% of its capital from debt. Notably, its equity weight is greater than only 21.4% of US equities in the Consumer Defensive sector yielding a positive free cash flow.
Newell Brands Inc's effective tax rate, as measured by taxes paid relative to net income, is at 39 -- greater than 92.13% of US stocks with positive free cash flow.
Newell Brands Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -6.93. This coverage rate is greater than that of just 9.89% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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