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 64th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 78.5%. As for the metrics that stood out in our discounted cash flow analysis of Sturm Ruger & Co Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 412.28 -- which is good for besting 99.04% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
The business' balance sheet suggests that 0% of the company's capital is sourced from debt; this is greater than just 2.78% of the free cash flow producing stocks we're observing.
RGR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 58.31% 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 RGR, try HI, MLI, OMAB, WSO, and MSM.
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