PQ Group Holdings Inc. provides catalysts, specialty materials and chemicals, and services. The company operates through two segments, Environmental Catalysts and Services: and Performance Materials and Chemicals. It primarily offers refinery catalysts, emissions control catalysts, and catalyst recycling services for fuels emissions controls use; silica gels for edible oil and beer clarification; precipitated silicas and zeolites for the surface coating, dentifrice, and dishwasher and laundry detergent applications; reflective markings for roadways and airports; and hollow glass beads or microspheres for cement additive, metal finishing, and oil well cement uses. The company also provides catalysts for high-density polyethylene and chemicals syntheses; antiblocks for film packaging; solid and hollow microspheres for composite plastics; silicate precursors for the tire industry; silicate for water treatment and drilling muds; sulfur derivatives for copper mining; and bleaching aids for paper. The company was founded in 2015 and is based in Malvern, Pennsylvania.
PQG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for PQ Group Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that PQ Group Holdings Inc ranked in the 95th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 4134.67% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for PQG, they are:
The company's compound free cash flow growth rate over the past 1.99 years comes in at 1.39%; that's greater than 92.83% of US stocks we're applying DCF forecasting to.
50% of the company's capital comes from equity, which is greater than only 20.51% of stocks in our cash flow based forecasting set.
Relative to other stocks in its sector (Basic Materials), PQ Group Holdings Inc has a reliance on debt greater than 86.56% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HDSN, CMC, BXC, BTG, and TGLS can be thought of as valuation peers to PQG, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
The Jordan Company L.P. ("TJC") announced that one of its affiliates has closed the previously announced acquisition of Potters Industries, LLC ("Potters"), the Performance Materials segment of publicly traded PQ Group Holdings, Inc. ("PQ", NYSE: PQG).
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