Ryerson Holding Corporation processes and distributes various metals in in the United States, Mexico, Canada, China, and Brazil. The company was founded in 1842 and is based in Chicago, Illinois.
RYI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for RYI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Ryerson Holding Corp ranked in the 90th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 2030% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Ryerson Holding Corp, consider:
31% of the company's capital comes from equity, which is greater than merely 11.36% of stocks in our cash flow based forecasting set.
Ryerson Holding Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Industrials), Ryerson Holding Corp has a reliance on debt greater than 87.25% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PGAS, R, VRTV, CVLG, and STRL can be thought of as valuation peers to RYI, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
CHICAGO , July 22, 2020 /PRNewswire/ -- Ryerson Holding Corporation (NYSE: RYI ) announced today that Joseph T. Ryerson & Son, Inc., its wholly-owned subsidiary ("JT Ryerson"), has completed its previously announced offering of $500 million aggregate principal amount of its 8.50% Senior Secured Notes due 2028 (the "2028 Notes") in a private offering to persons reasonably believed to be "qualified institutional buyers," as defined in Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and non-U.S. persons outside the United States under Regulation S under the Securities Act. The 2028 Notes were priced to investors at 100% of their principal amount and will mature on August 1, 2028 . JT Ryerson's obligations under the 2028 Notes will be guaranteed by the Company...
Ryerson Holding's (RYI) subsidiary Joseph T. Ryerson & Son priced its $500M principal amount of its 8.50% senior secured notes due August 2028.Notes were priced to investors at 100% of their principal amount and offer is expected to close on July 22, 2020.Previously: Ryerson subsidiary to offer senior secured notes worth...