Toyota Motor Corporation designs, manufactures, assembles, and sells passenger cars, minivans and commercial vehicles, and related parts and accessories. The company was founded in 1933 and is based in Toyota City, Japan.
TM 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 Toyota Motor Corp. To summarize, we found that Toyota Motor Corp ranked in the 88th 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 TM, they are:
In the past 5.57 years, Toyota Motor Corp has a compound free cash flow growth rate of -0.07%; that's better than merely 15.88% of cash flow producing equities in the Consumer Cyclical sector, where it is classified.
Toyota Motor Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 3.34% of tickers in our DCF set.
TM'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 3.34% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
WINA, HOV, SKY, LCUT, and LZB can be thought of as valuation peers to TM, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
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