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 36th 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:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 83. Notably, its equity weight is greater than 65.38% of US equities in the Industrials sector yielding a positive free cash flow.
Xylem 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.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CECE, CW, FAST, LUV, and NSP 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.
Since I wrote my bullish piece on Xylem Inc. (XYL) in late May, the shares are up about 28% against a gain of 10.25% for the S&P 500. A reader has asked for an update on this name, and I’m positively obsessed with giving the people what they want, so...
Patrick Doyle on Seeking Alpha | September 28, 2020
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In my previous note on Xylem Inc. (XYL) published in May, I made a remark that if I were the company’s executive, I would opt for a suspension of the dividend if cash flow does not normalize in Q2. I was also slightly skeptical of the capital appreciation potential given...
Vasily Zyryanov on Seeking Alpha | August 31, 2020