Regal Beloit Corporation is a manufacturer of electric motors, mechanical and electrical motion controls and power generation products. The company was founded in 1955 and is based in Beloit, Wisconsin.
RBC 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 Regal Beloit Corp. To summarize, we found that Regal Beloit Corp ranked in the 58th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for RBC, they are:
Interest coverage, a measure of earnings relative to interest payments, is 5.28; that's higher than 56.24% of US stocks in the Industrials sector that have positive free cash flow.
Regal Beloit Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 17.82% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as RBC, try TRNS, WCC, HII, AGCO, and ICFI.
Regal Beloit Corporation (RBC) Q2 2020 Earnings Conference Call July 04, 2020 10:00 AM ET Company Participants Robert Barry – Vice President of Investor Relations Louis Pinkham – Chief Executive Officer Robert Rehard – Chief Financial Officer Conference Call Participants Julian Mitchell – Barclays Mike Halloran – Baird Christopher Glynn...