Waters Corporation designs, manufactures, distributes and services instrument systems, columns and other chemistry consumables that are integrated and used along with other analytical instruments. The Company has two segments: Waters Division and TA Division. The company was founded in 1958 and is based in Milford, Massachusetts
WAT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Waters Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Waters Corp ranked in the 24th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Waters Corp, consider:
In the past 5.42 years, Waters Corp has a compound free cash flow growth rate of 0.03%; that's better than merely 24.77% of cash flow producing equities in the Healthcare sector, where it is classified.
WAT'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 32.6% of tickers in our DCF set.
Waters Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 12.22. This coverage rate is greater than that of 81.12% of stocks we're observing for the purpose of forecasting via discounted cash flows.
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 Waters Corp? See CAH, VIVO, A, ENTA, and HOLX.
CAMBRIDGE, Mass.--(BUSINESS WIRE)--Waters Corporation (NYSE:WAT) announced this week at Biotech Week Boston the establishment of Immerse™ Cambridge, a new Waters' research laboratory in the heart of Cambridge’s Kendall Square. Immerse Cambridge will serve as a strategic, collaborative space in the community, where Waters can partner with academia, research and industry to accelerate the next generation of scientific advancements. “Immerse Cambridge will house the latest analytical instruments a
BOSTON--(BUSINESS WIRE)-- #DSP--LabMinds, Inc., a pioneer in automation for solution preparation in life sciences, today announced that Waters Corporation (NYSE: WAT), a global leader in specialty measurement in life, food and materials sciences, is outfitting several of its R&D and customer demonstration laboratories with LabMinds’ REVO solution preparation systems. The REVO robotic systems will help Waters boost efficiency within its lab operations by enabling remote operation and automation of
MILFORD, Mass.--(BUSINESS WIRE)--Waters Corporation (NYSE: WAT) today announced second quarter 2020 sales of $520 million, a 13% decrease as reported, compared to sales of $599 million for the second quarter of 2019. Foreign currency translation negatively impacted sales growth by approximately 1% for the quarter. The Company’s results were impacted by lower demand across all major geographies due to the COVID-19 pandemic. On a GAAP basis, diluted earnings per share (EPS) for the second quarter
We know that hedge funds generate strong, risk-adjusted returns over the long run, which is why imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, professional investors have to conduct complex analyses, spend many resources and use tools that are not […]