Trimble Navigation applies technology to make field and mobile workers in businesses and government significantly more productive. Solutions are focused on applications requiring position or location, including surveying, construction, agriculture, fleet and asset management, public safety and mapping. The company was founded in 1978 and is based in Sunnyvale, California.
TRMB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Trimble Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Trimble Inc ranked in the 37th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for TRMB, they are:
Trimble Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 7. This value is greater than just 16.09% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as TRMB, try ACN, NTWK, WSTG, ADBE, and SPRS.