Packaging Corporation of America (PKG) Company Bio
Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products in the United States, Europe, Mexico, and Canada. The company was founded in 1867 and is based in Lake Forest, Illinois.
PKG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Packaging Corp Of America with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Packaging Corp Of America ranked in the 61th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 94% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Packaging Corp Of America, consider:
Packaging Corp Of America's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 22.26% of tickers in our DCF set.
PKG'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 only 22.26% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), Packaging Corp Of America has a reliance on debt greater than only 24.79% 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 Packaging Corp Of America? See CLUB, MTN, RICK, AMTY, and BDL.