WABCO Holdings is a leading innovator and global supplier of technologies that improve the safety and efficiency of commercial vehicles. The company was founded in 1869 and is based in Brussels, Belgium.
WBC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for WBC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that WABCO Holdings Inc ranked in the 14th 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. The most interesting components of our discounted cash flow analysis for WABCO Holdings Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.58 years, is -0.11% -- higher than only 16.62% of stocks in our DCF forecasting set.
WBC'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 44.83% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), WABCO Holdings Inc has a reliance on debt greater than just 11.63% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WBC, try ALV, JILL, BBW, DLB, and TIF.