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 50th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Packaging Corp Of America ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 83. Its equity weight surpasses that of 72.74% of free cash flow generating stocks in the Consumer Cyclical sector.
Packaging Corp Of America's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 22.2% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ALV, THO, WWW, MTOR, and SCI can be thought of as valuation peers to PKG, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
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