WD-40 Company offers multi-purpose maintenance products under the WD-40 brand for household, marine, automotive, construction, repair, sporting goods, gardening, and various industrial applications, and multi-purpose drip oil and spray lubricant, and other specialty maintenance products under the 3-IN-ONE brand for household, locksmithing, HVAC, marine, farming, construction, and jewelry manufacturing applications. The company was founded in 1953 and is based in San Diego, California.
WDFC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Wd 40 Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Wd 40 Co ranked in the 18th 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 Wd 40 Co, consider:
As a business, WDFC is generating more cash flow than merely 23.14% of positive cash flow stocks in the Basic Materials.
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately only 11.83% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
WDFC'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 51.46% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HHT, GOLD, KWR, WPM, and TREX can be thought of as valuation peers to WDFC, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
SAN DIEGO, April 9, 2020 /PRNewswire/ -- WD-40 Company (NASDAQ:WDFC), a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories and homes around the world, today reported financial results…