TransUnion provides consumer reports, risk scores, analytical services and decisioning capabilities to businesses. The company was founded in 1968 and is based in Chicago, Illinois.
TRU Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for TransUnion with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that TransUnion ranked in the 76th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 247.33%. The most interesting components of our discounted cash flow analysis for TransUnion ended up being:
The company's compound free cash flow growth rate over the past 5.48 years comes in at 0.7%; that's greater than 85.97% of US stocks we're applying DCF forecasting to.
The company has produced more trailing twelve month cash flow than 77.15% of its sector Industrials.
TransUnion's weighted average cost of capital (WACC) is 9%; for context, that number is higher than just 23.44% of tickers in our DCF set.
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 TRU, try AAWW, PWR, URI, OBCI, and OSK.
The U.S. Supreme Court granted review Wednesday in Transunion v. Ramirez, a $40 million Fair Credit Reporting Act class action that presents the question of whether the Constitution’s standing requirements or the federal procedural rule governing class actions precludes…