Sturm, Ruger & Company is one of the nation's leading manufacturers of rugged, reliable firearms for the commercial sporting market. The company was founded in 1949 and is based in Southport, Connecticut.
RGR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Sturm Ruger & Co Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Sturm Ruger & Co Inc ranked in the 17th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Sturm Ruger & Co Inc ended up being:
The business' balance sheet suggests that 0% of the company's capital is sourced from debt; this is greater than merely 0% of the free cash flow producing stocks we're observing.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than merely 0% of stocks in its sector (Industrials).
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 RGR, try TTC, FLOW, ZTO, TRS, and WLDN.