Snap-On Incorporated delivers products and services, including hand and power tools, tool storage, diagnostics software, information and management systems, shop equipment and other solutions for vehicle dealerships and repair centers, as well as for customers in industries, including aviation and aerospace, agriculture, construction, government and military, mining, natural resources, power generation and technical education. The company was founded in 1920 and is based in Kenosha, Wisconsin.
SNA 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 Snap-on Inc. To summarize, we found that Snap-on Inc ranked in the 63th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 62.67% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Snap-on Inc, consider:
SNA'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 26.45% of tickers in our DCF set.
Snap-on Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 16.16. This coverage rate is greater than that of 83.42% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 8. This value is greater than merely 23.94% stocks in the Industrials sector that generate 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 SNA, try TKR, MLHR, AEGN, NAV, and CRS.
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