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 78th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 407.67%. In terms of the factors that were most noteworthy in this DCF analysis for TRNS, they are:
The company's balance sheet shows it gets 88% of its capital from equity, and 12% of its capital from debt. Its equity weight surpasses that of 73.89% of free cash flow generating stocks in the Industrials sector.
The company's compound free cash flow growth rate over the past 5.75 years comes in at 0.56%; that's greater than 81.84% of US stocks we're applying DCF forecasting to.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as TRNS, try NXTD, TAYD, ALG, MGRC, and NMM.