Rexnord Corporation is comprised of two strategic platforms, Process & Motion Control and Water Management. The Process & Motion Control platform designs, manufactures, markets and services specified, highly-engineered mechanical components used within complex systems. The Water Management platform designs, procures, manufactures and markets products that provide and enhance water quality, safety, flow control and conservation. The company was founded in 2006 and is based in Milwaukee, Wisconsin.
RXN 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 Rexnord Corp. To summarize, we found that Rexnord Corp ranked in the 52th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Rexnord Corp, consider:
The company has produced more trailing twelve month cash flow than 64.77% of its sector Industrials.
Rexnord Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 22.98% of tickers in our DCF set.
Rexnord Corp's effective tax rate, as measured by taxes paid relative to net income, is at 16 -- greater than 61.4% of US stocks with positive free cash flow.
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 RXN, try GTMAY, BMI, ETN, TT, and GLBS.