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:
Below please find a table outlining a discounted cash flow forecast for WDFC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Wd 40 Co 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 Wd 40 Co ended up being:
The company has produced more trailing twelve month cash flow than only 17.38% of its sector Basic Materials.
The business' balance sheet suggests that 6% of the company's capital is sourced from debt; this is greater than just 16.11% of the free cash flow producing stocks we're observing.
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 42.48% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WDFC, try AA, GOLD, KGC, MOS, and WPM.
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Prepared by Chris, Lead at BAD BEAT Investing WD-40 Company (NASDAQ:WDFC) had long been a stock that was overvalued, but the stock has continued to reward us slowly as long-term shareholders. The last time I checked in on the stock, I felt shares would head lower. Sure enough they dipped...
WDFC (WDFC) Q3 2020 Results Conference Call July 09, 2020 05:00 PM ET Company Participants Wendy Kelley - Director, IR and Corporate Communications Garry Ridge - Chairman and CEO Jay Rembolt - VP and CFO Steve Brass - President and COO Conference Call Participants Linda Bolton Weiser - D.A. Davidson...