Silgan Holdings is a leading supplier of metal containers in North America and Europe and a leading worldwide supplier of metal, composite and plastic closures for food and beverage products. In addition, Silgan is a leading supplier of plastic containers for shelf-stable food and personal care products in North America. The company was founded in 1987 and is based in Stamford, Connecticut.
SLGN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Silgan Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Silgan Holdings Inc ranked in the 63th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 104% on a DCF basis. The most interesting components of our discounted cash flow analysis for Silgan Holdings Inc ended up being:
The company has produced more trailing twelve month cash flow than 70.13% of its sector Consumer Cyclical.
The business' balance sheet reveals debt to be 48% of the company's capital (with equity being the remaining amount). Approximately 74.31% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Silgan Holdings Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 2.55% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SLGN, try CRWS, RSTRF, GCO, LOW, and CHUY.
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