Timken Company engineers, manufactures and markets bearings, transmissions, gearboxes, chain and related products, and offers a spectrum of powertrain rebuild and repair services. The company was founded in 1899 and is based in North Canton, Ohio.
TKR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Timken Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Timken Co ranked in the 60th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for TKR, they are:
As a business, TKR is generating more cash flow than 75.87% of positive cash flow stocks in the Industrials.
Timken Co's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 15.3% of tickers in our DCF set.
TKR'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 just 15.3% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DE, AYI, MNTX, CRS, and LMT can be thought of as valuation peers to TKR, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
NORTH CANTON, Ohio, Jan. 7, 2021 /PRNewswire/ -- The Timken Company today announced the appointment of Sarah Lauber to its Board of Directors. The election will bring The Timken Company board to 12 members. Lauber has served as chief financial officer and secretary of Douglas Dynamics, a…