Chemical & Mining Company of Chile is an integrated producer and distributor of specialty plant nutrients, iodine, lithium, potassium-related fertilizers and industrial chemicals. The company was founded in 1968 and is based in Santiago, Chile.
SQM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SQM, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Chemical & Mining Co Of Chile Inc ranked in the 21th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for SQM, they are:
The company's compound free cash flow growth rate over the past 4.94 years comes in at -0.15%; that's greater than merely 13.26% of US stocks we're applying DCF forecasting to.
Chemical & Mining Co Of Chile Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 12.72% of tickers in our DCF set.
As a business, Chemical & Mining Co Of Chile Inc experienced a tax rate of about 19% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than 72.64% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SQM, try CENX, APD, TREX, KWR, and WPM.
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