Pentair plc operates as a diversified industrial manufacturing company in the United States, Europe, and internationally. The company operates through Valves & Controls, Technical Solutions, Flow & Filtration Solutions, and Water Quality Systems segments. The company was founded in 1966 and is based in Manchester, the United Kingdom.
PNR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for PNR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that PENTAIR plc ranked in the 22th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for PNR, they are:
Its compound free cash flow growth rate, as measured over the past 5.66 years, is -0.09% -- higher than only 15.28% of stocks in our DCF forecasting set.
The business' balance sheet reveals debt to be 8% of the company's capital (with equity being the remaining amount). Approximately merely 21.28% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 0% of stocks in its sector (Industrials).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
LECO, ROK, CNI, GGG, and IEA can be thought of as valuation peers to PNR, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Pentair (PNR) re-affirms FY20 GAAP EPS from continuing operations of $1.70-$1.90 and Non-GAAP EPS of $2.00-$2.20 vs. $2.19 consensus.FY20 sales of ~$2.8B vs. consensus of $2.81B and FCF of greater than 100 percent of net income....