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 55th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 47.17%. The most interesting components of our discounted cash flow analysis for Snap-on Inc ended up being:
The company has produced more trailing twelve month cash flow than 82.53% of its sector Industrials.
SNA's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 27.19% 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 16.31. This coverage rate is greater than that of 84.84% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Snap-on Inc? See HY, CSX, LDL, CR, and ULBI.
Snap-on (SNA) acquired AutoCrib assets for ~$36M in cash on September 28, 2020. Based in Tustin, California, with 2019 sales of approximately $30 million, AutoCrib is a leading designer, manufacturer and marketer of tool and asset control solutions.The acquisition complements and expands Snap-on’s existing tool control offering to customers in...