Valvoline International, Inc. manufactures and distributes automotive, commercial, and industrial lubricants, and automotive chemicals. The company was founded in 1918 and is based in Lexington, Kentucky.
VVV Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Valvoline Inc. To summarize, we found that Valvoline Inc ranked in the 29th 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 Valvoline Inc ended up being:
The company's compound free cash flow growth rate over the past 3.93 years comes in at -0.03%; that's greater than just 21.1% of US stocks we're applying DCF forecasting to.
Valvoline Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 7% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than merely 17.53% of stocks in its sector (Energy).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CEO, CNX, BKR, NEX, and PSXP can be thought of as valuation peers to VVV, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
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