Quad/Graphics Inc. provides print and media solutions in the United States, Europe, and Latin America. The company was founded in 1971 and is based in Sussex, Wisconsin.
QUAD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for QUAD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Quad/Graphics Inc ranked in the 25th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Quad/Graphics Inc ended up being:
In the past 5.54 years, Quad/Graphics Inc has a compound free cash flow growth rate of -0.14%; that's better than only 11.49% of cash flow producing equities in the Industrials sector, where it is classified.
10% of the company's capital comes from equity, which is greater than only 5.17% of stocks in our cash flow based forecasting set.
Quad/Graphics Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.01. This coverage rate is greater than that of merely 13.39% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CNI, FORR, ADP, HII, and MATW can be thought of as valuation peers to QUAD, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.