* Note: Prices are in Million (M) USD.
Description:
Fortive is an American diversified industrial technology conglomerate company headquartered in Everett, Washington.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,833 M
Debt : $4,812 M
EBITDA : $1,578 M
Net Debt (Debt - Cash): $2,980 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Scientific & technical instruments
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 18.92
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 13 overlapping fiscal years (max 20).Average Free Cash Flow: $1,087 M
Average Revenue: $5,790 M
Revenue Converted To Free Cash Flow (%): 18.8%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $6,232 M
Revenue 4 Years Ago (2020-12-31): $4,634 M
Last 5 Years Average Revenue Growth: 7%
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): $353 M
Share Count 5 Years Ago (2020-12-31): $359 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.84
Trailing 12-Month Earnings Per Share (EPS): $2.23
Average Earnings Per Share (EPS): $2.53
Dividend Per Share (DPS): $0
Payout Ratio: 9%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 12 valid ROE years (max 20).Average ROE: 17.7%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $48
52-Week Low: $45
Threshold Price (15% Above 52-Week Low): $52
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $16,193 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 30 points to above Fortive Corp (FTV) stock.
Last 9 Years Avg PE 22.89, Fair Value PE 25, Industry Based PE 25, Growth Based PE 6, RCFC Based PE 25.01, ROE Based PE 24.18, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 20.74. Value-Trades has assined P/E value 20.74. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.53.
The fair value of Fortive Corp (FTV) stock should be (20.74 x $2.53) = $52.47.
