Advanced Drainage Systems designs, manufactures, and markets thermoplastic corrugated pipes and related water management products for non-residential, residential, agriculture, and infrastructure applications in the United States and internationally. The company was founded in 1966 and is based in Hilliard, Ohio.
WMS 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 Advanced Drainage Systems Inc. To summarize, we found that Advanced Drainage Systems Inc ranked in the 79th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 449.17% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for WMS, they are:
Advanced Drainage Systems Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
Advanced Drainage Systems Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.26. This coverage rate is greater than that of only 13.38% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 11. This value is greater than 84.52% stocks in the Basic Materials sector that generate free cash flow.
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 Advanced Drainage Systems Inc? See XPEL, NGVT, BECN, DOOR, and ODC.