Ultrapar Participacoes S.A. (New) American Depositary Shares (Each representing one Common Share) (UGP) Company Bio
Ultrapar Holdings engages in the fuel distribution and specialty chemical businesses. It operates in four segments: Gas Distribution, Fuel Distribution, Chemicals, and Storage. The company was founded in 1937 and is based in Sao Paulo, Brazil.
UGP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for UGP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Ultrapar Holdings Inc ranked in the 79th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 569.5%. The most interesting components of our discounted cash flow analysis for Ultrapar Holdings Inc ended up being:
The company's compound free cash flow growth rate over the past 3.98 years comes in at -0.04%; that's greater than only 23.34% of US stocks we're applying DCF forecasting to.
As a business, UGP is generating more cash flow than 83.74% of positive cash flow stocks in the Energy.
Ultrapar Holdings Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 11.01% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
LPG, HFC, SGU, ENLC, and OVV can be thought of as valuation peers to UGP, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.