XPO Logistics provides high-value-added services for surface transportation, including freight brokerage, intermodal, last mile and expedite, highly engineered contract logistics, warehousing and distribution, and global forwarding by ground, air and sea. The company was founded in 1996 and is based in Greenwich, Connecticut.
XPO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for XPO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that XPO Logistics Inc ranked in the 93th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 3761.17%. The most interesting components of our discounted cash flow analysis for XPO Logistics Inc ended up being:
The company's balance sheet shows it gets 48% of its capital from equity, and 52% of its capital from debt. Its equity weight surpasses that of only 24.5% of free cash flow generating stocks in the Industrials sector.
Its compound free cash flow growth rate, as measured over the past 3.99 years, is 1.33% -- higher than 93.11% of stocks in our DCF forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SCS, ESOA, HEES, RYI, and GOL can be thought of as valuation peers to XPO, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
XPO Logistics (XPO) +2% after-hours following a Bloomberg report that it has revived a sale of its European supply chain business, after the process had paused during the pandemic.The company has reached out to potential private equity and strategic buyers about the unit, which could fetch $4B-$4.5B in a sale, according...