Post Holdings manufactures, markets, and sells refrigerated, active nutrition, and private label food products in the United States and Canada. The company operates through five segments: Post Foods, Michael Foods, Active Nutrition, Private Brands, and Attune Foods. The company was founded in 1895 and is based in St. Louis, Missouri.
POST Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Post Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Post Holdings Inc ranked in the 58th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 113%. As for the metrics that stood out in our discounted cash flow analysis of Post Holdings Inc, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 49. Notably, its equity weight is greater than only 18.67% of US equities in the Consumer Defensive sector yielding a positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 5.5 years, is 0.47% -- higher than 82.53% of stocks in our DCF forecasting set.
Post Holdings Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
UN, CCEP, KHC, CHEF, and KDP can be thought of as valuation peers to POST, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.