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:
We started the process of determining a valid price forecast for Rpm International Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Rpm International Inc ranked in the 29th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 36%. The most interesting components of our discounted cash flow analysis for Rpm International Inc ended up being:
74% of the company's capital comes from equity, which is greater than 56.7% of stocks in our cash flow based forecasting set.
As a business, Rpm International Inc experienced a tax rate of about 15% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than 55.21% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as RPM, try TECK, CEIX, TREC, TREX, and ARCH.