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:
We started the process of determining a valid price forecast for Regal Beloit Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Regal Beloit Corp ranked in the 67th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 132.5%. The most interesting components of our discounted cash flow analysis for Regal Beloit Corp ended up being:
In the past 5.75 years, Regal Beloit Corp has a compound free cash flow growth rate of 0.13%; that's higher than 55.49% of free cash flow generating stocks in the Industrials sector.
Regal Beloit Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 16.16% 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 OMAB, JBHT, NWPX, AZZ, and ASGN.
Regal Beloit Corporation (NYSE: RBC) will be presenting at the Goldman Sachs Industrials & Materials Conference on Wednesday, May 13, 2020, at 1:50 PM EDT. The presentation will be webcast and can be accessed at http://investors.regalbeloit.com. An archive of the webcast will be available for 180 days following the presentation at the link referenced above.