* Note: Prices are in Million (M) USD.
Description:
Carrier Global Corporation is an American multinational home appliances corporation based in Palm Beach Gardens, Florida.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,797 M
Debt : $11,780 M
EBITDA : $4,185 M
Net Debt (Debt - Cash): $9,983 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Industrials
Industry: Industrials
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 8 overlapping fiscal years (max 20).Average Free Cash Flow: $1,521 M
Average Revenue: $19,801 M
Revenue Converted To Free Cash Flow (%): 7.7%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $22,486 M
Revenue 4 Years Ago (2020-12-31): $17,456 M
Last 5 Years Average Revenue Growth: 6%
Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $912 M
Share Count 5 Years Ago (2020-12-31): $880 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $3.46
Trailing 12-Month Earnings Per Share (EPS): $3.06
Average Earnings Per Share (EPS): $3.26
Dividend Per Share (DPS): $1
Payout Ratio: 27%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 8 valid ROE years (max 20).Average ROE: 25.2%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $65
52-Week Low: $54
Threshold Price (15% Above 52-Week Low): $62
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $56,950 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 19 points to above Carrier Global Corp (CARR) stock.
Last 5 Years Avg PE 22.6, Fair Value PE 12, Industry Based PE 16, Growth Based PE 5, RCFC Based PE 16.15, ROE Based PE 30.14, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 17.00. Value-Trades has assined P/E value 17.00. Since an average (Current Year EPS + Next Year EPS) earning per share is $3.26.
The fair value of Carrier Global Corp (CARR) stock should be (17.00 x $3.26) = $55.41.
