Union Pacific offers freight transportation services for agricultural products, including grains, commodities produced from grains, and food and beverage products; automotive products, chemicals, plastics, crude oil, liquid petroleum gases, fertilizers, soda ash, sodium products, and phosphorus rock and sulfur products. The company was founded in 1862 and is based in Omaha, Nebraska.
UNP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Union Pacific Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Union Pacific Corp ranked in the 35th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Union Pacific Corp ended up being:
As a business, UNP is generating more cash flow than 97.13% of positive cash flow stocks in the Industrials.
Union Pacific Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 22.47% of tickers in our DCF set.
UNP'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 only 22.47% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CW, XYL, CECE, CRS, and FAST can be thought of as valuation peers to UNP, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Union Pacific stock price analysis Union Pacific stock (UNP) price expansion is similar to all the other railroad stocks over the last 10 years. The performance has been amazing and those that dared to buy rail stocks in March of 2009 are now looking at returns of 1000%, not even...
In this article, I am going to update my Union Pacific (UNP) thesis. Despite a weak economy, the stock has been doing well, rising to a new all-time high in August. While valuation has certainly been stretched, the good news is starting to roll in as economic growth is picking...
Leo Nelissen on Seeking Alpha | September 14, 2020
"I've Never Seen Anything Like This": Shippers Using West Coast Ports Can't Book Rail On BNSF And Union Pacific Tyler Durden Sun, 09/13/2020 - 20:30 By Stas Margaronis of AJot Insights A Northern California logistics consultant was unable to book containers on the Burlington Northern Santa Fe (BNSF) or Union Pacific (UP) railroads for the first week of September going to and from U.S. West Coast ports and Midwest destinations. The consultant said, “I have been working in the industry for thirty years and I have never seen anything like this. It’s weird.” The result is that importers of low value products being shipped by containers such as tee shirts would be at an economic disadvantage transporting containers by truck as opposed to by rail between U.S. West Coast ports and Midwest dest...
OMAHA, Neb., Aug. 31, 2020 /PRNewswire/ -- Union Pacific Corporation (NYSE:UNP; and "Union Pacific" or the "Corporation") today announced the pricing terms of its private offers to exchange certain of its outstanding notes and debentures referenced in the table below (the "Existing…
OMAHA, Neb., Aug. 31, 2020 /PRNewswire/ -- Union Pacific Corporation (NYSE:UNP; and "Union Pacific" or the "Corporation") today announced (a) the early results of its private offers to exchange certain of its outstanding notes and debentures referenced in the table below for a combination…