Performance Food Group is one of the largest food delivery companies in the U.S., delivering products to restaurants, cafeterias, schools, theaters and other food venues. The company was founded in 1875 and is based in Goochland County, Virginia.
PFGC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for PFGC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Performance Food Group Co ranked in the 28th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 63.33%. As for the metrics that stood out in our discounted cash flow analysis of Performance Food Group Co, consider:
Performance Food Group Co's effective tax rate, as measured by taxes paid relative to net income, is at 48 -- greater than 94.11% of US stocks with positive free cash flow.
Performance Food Group Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.95. This coverage rate is greater than that of only 20.6% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 12. This value is greater than 91.54% stocks in the Consumer Defensive sector that generate free cash flow.
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 Performance Food Group Co? See DAR, EPC, WBA, LNDC, and HMHC.