Verso Corporation manufactures and supplies coated papers in the United States. It operates in two segments, Paper and Pulp. The company primarily produces coated freesheet and coated groundwood papers; northern bleached hardwood kraft pulp; recycled paper; and customized product solutions. It also offers ultra-lightweight uncoated printing papers, and ultra-lightweight coated and uncoated flexible packaging papers. Its products are used primarily in media and marketing applications, including catalogs, magazines, and commercial printing applications, such as high-end advertising brochures, annual reports, and direct-mail advertising. The company was founded in 2006 and is based in Memphis, Tennessee.
VRS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for VRS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Verso Corp ranked in the 12th 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 VRS, they are:
The company's compound free cash flow growth rate over the past 3.3 years comes in at -0.18%; that's greater than only 10.33% of US stocks we're applying DCF forecasting to.
As a business, VRS is generating more cash flow than merely 15.97% of positive cash flow stocks in the Basic Materials.
The business' balance sheet suggests that 2% of the company's capital is sourced from debt; this is greater than only 6.8% of the free cash flow producing stocks we're observing.
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 Verso Corp? See ASH, HHT, POPE, SMG, and UAN.