Park-Ohio Holdings Corporation operates as an industrial supply chain logistics and diversified manufacturing company in the United States, Canada, Europe, Asia, Mexico, and other countries. The company operates in three segments: Supply Technologies, Assembly Components, and Engineered Products. The company was founded in 1961 and is based in Cleveland, Ohio.
PKOH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Park Ohio Holdings Corp. To summarize, we found that Park Ohio Holdings Corp ranked in the 53th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 33.33%. In terms of the factors that were most noteworthy in this DCF analysis for PKOH, they are:
27% of the company's capital comes from equity, which is greater than merely 11.05% of stocks in our cash flow based forecasting set.
The business' balance sheet reveals debt to be 73% of the company's capital (with equity being the remaining amount). Approximately 88.91% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
The weighted average cost of capital for the company is 11. This value is greater than 77.61% stocks in the Industrials 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 Park Ohio Holdings Corp? See GTLS, TTEK, FCN, MSM, and ENR.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Park-Ohio Industries Incorporated and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
In this article you are going to find out whether hedge funds think Park-Ohio Holdings Corp. (NASDAQ:PKOH) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks […]