Xylem Inc. is a global water technology provider, enabling customers to transport, treat, test and efficiently use water in public utility, residential and commercial building services, industrial and agricultural settings. The company was founded in 2011 and is based in Rye Brook, New York.
XYL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for XYL, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Xylem Inc ranked in the 40th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for XYL, they are:
XYL'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 28.22% of tickers in our DCF set.
As a business, Xylem Inc experienced a tax rate of about 1% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than just 19.15% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ITW, ZNH, KEX, RSG, and CAT can be thought of as valuation peers to XYL, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Moody's Investors Service ("Moody's") assigned a Baa2 rating to Xylem Inc.'s (Xylem) new senior unsecured (green bond) notes issuance. Concurrently, Moody's affirmed all existing ratings for Xylem, including the company's Baa2 senior unsecured rating and Prime-2 short-term rating.