Transcat, Inc. provides calibration and laboratory instrument services in the United States, Canada, and internationally. It operates in two segments, Service and Distribution. The Service segment offers calibration, repair, inspection, analytical qualifications, preventative maintenance, consulting, and other related services. The company was founded in 1964 and is based in Rochester, New York.
TRNS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for TRNS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Transcat Inc ranked in the 26th 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 TRNS, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 9.69; that's higher than 69.74% of US stocks in the Industrials sector that have positive free cash flow.
TRNS'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 28.2% of tickers in our DCF set.
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 Transcat Inc? See NLSN, PATI, GD, MEC, and USAK.
In this article we will take a look at whether hedge funds think Transcat, Inc. (NASDAQ:TRNS) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips from […]