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Hyster-Yale Materials Handling, Inc. (NYSE:) is currently trading close to its projected fair value, according to a recent valuation conducted using a Discounted Cash Flow (DCF) approach with a two-stage growth model. This model breaks down the company’s growth into an early high-growth phase and a subsequent stable growth phase, forecasting decade-long cash flows based on analyst predictions or extrapolation from historical free cash flow figures.
Today, the firm’s shares are priced at US$43.69, hovering near its estimated fair value of US$49.01. This suggests that Hyster-Yale is less discounted compared to the industry average discount of 5.8%. The valuation model used for this analysis provides an in-depth look at the company’s potential growth trajectory and offers investors insights into the stock’s current pricing relative to its projected worth.
InvestingPro Insights
InvestingPro data and tips suggest a favorable outlook for Hyster-Yale Materials Handling, Inc.. The company’s revenue growth has been accelerating, with a 20.15% increase in the last twelve months as of Q3 2023. This is complemented by a significant return over the last week, with a total return of 12.17%, indicating a positive short-term performance.
The company’s commitment to its shareholders is evident as it has raised its dividend for nine consecutive years and maintained dividend payments for twelve consecutive years. This is supported by a dividend yield of 2.98% as of Q3 2023.
According to two analysts, the earnings for the upcoming period have been revised upwards, a promising sign for the future profitability of the company. This is backed by the company’s P/E ratio (adjusted) of 6.3 as of Q3 2023, which suggests that the company is trading at a low earnings multiple, possibly indicating an undervalued stock.
InvestingPro Tips also highlight that the company is expected to be profitable this year, and it has indeed been profitable over the last twelve months. The net income is also predicted to grow this year, further emphasizing the company’s strong financial health.
InvestingPro offers many more tips and real-time data for Hyster-Yale and other companies. These insights can provide valuable information to investors, helping them make informed decisions about their investments.
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