RPM International owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services for both industrial and consumer markets. RPM's industrial products include roofing systems, sealants, corrosion control coatings, flooring coatings and specialty chemicals. The company was founded in 1947 and is based in Medina, Ohio.
RPM 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 Rpm International Inc. To summarize, we found that Rpm International Inc ranked in the 61th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 51% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for RPM, they are:
The company has produced more trailing twelve month cash flow than 78.18% of its sector Basic Materials.
Rpm International Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 18.27% of tickers in our DCF set.
RPM'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 merely 18.27% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Rpm International Inc? See SVM, CSL, CMP, VHI, and PPG.
RPM International (RPM) dispelled much of the DIY-related fears heading into FQ2 '21 earnings, and while I do see a moderation in YoY comparisons ahead for the Consumer segment, I would be a buyer on dips. The majority of RPM's core businesses still look set for multi-year growth acceleration, and...
Opal Investment Research on Seeking Alpha | January 20, 2021