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Calculating The Fair Value Of Dana Incorporated (NYSE:DAN)
Calculating The Fair Value Of Dana Incorporated (NYSE:DAN)

Yahoo

time01-06-2025

  • Business
  • Yahoo

Calculating The Fair Value Of Dana Incorporated (NYSE:DAN)

Dana's estimated fair value is US$18.04 based on 2 Stage Free Cash Flow to Equity With US$16.63 share price, Dana appears to be trading close to its estimated fair value Analyst price target for DAN is US$19.29, which is 6.9% above our fair value estimate In this article we are going to estimate the intrinsic value of Dana Incorporated (NYSE:DAN) by taking the expected future cash flows and discounting them to today's value. This will be done using the Discounted Cash Flow (DCF) model. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$237.9m US$287.0m US$318.6m US$255.6m US$221.8m US$203.2m US$193.1m US$188.1m US$186.3m US$186.7m Growth Rate Estimate Source Analyst x3 Analyst x2 Analyst x2 Analyst x1 Est @ -13.22% Est @ -8.37% Est @ -4.98% Est @ -2.60% Est @ -0.94% Est @ 0.22% Present Value ($, Millions) Discounted @ 9.6% US$217 US$239 US$242 US$177 US$140 US$117 US$102 US$90.2 US$81.5 US$74.6 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$1.5b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.9%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.6%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$187m× (1 + 2.9%) ÷ (9.6%– 2.9%) = US$2.9b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$2.9b÷ ( 1 + 9.6%)10= US$1.1b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$2.6b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of US$16.6, the company appears about fair value at a 7.8% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Dana as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.6%, which is based on a levered beta of 1.542. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Dana Strength No major strengths identified for DAN. Weakness Interest payments on debt are not well covered. Dividend is low compared to the top 25% of dividend payers in the Auto Components market. Opportunity Expected to breakeven next year. Has sufficient cash runway for more than 3 years based on current free cash flows. Good value based on P/S ratio and estimated fair value. Threat Debt is not well covered by operating cash flow. Paying a dividend but company is unprofitable. Revenue is forecast to decrease over the next 2 years. Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. DCF models are not the be-all and end-all of investment valuation. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For Dana, there are three pertinent elements you should look at: Risks: Take risks, for example - Dana has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about. Future Earnings: How does DAN's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

RBC Upgrades Dana (DAN) Stock to Outperform, Lifts PT
RBC Upgrades Dana (DAN) Stock to Outperform, Lifts PT

Yahoo

time22-05-2025

  • Automotive
  • Yahoo

RBC Upgrades Dana (DAN) Stock to Outperform, Lifts PT

On May 22, RBC Capital Markets analyst Tom Narayan upped Dana Incorporated (NYSE:DAN)'s stock from 'Sector Perform' to 'Outperform', while raising the price objective to $20.00 from $14.00. This upgrade comes on the heels of expectations that Dana Incorporated (NYSE:DAN) will announce its Off-Highway (OH) deal in June. This will result in positive outcomes and potentially higher capital returns. Furthermore, the analyst believes that even without the deal, the company's core business fundamentals remain strong, and it seems that the market is not fully appreciating this. A modern commercial vehicle on the road, its engine powered by the company's drive system. The sale of Dana Incorporated (NYSE:DAN)'s Off-Highway business remains underway with a competitive process. It continues to execute its cost-savings initiative and has adopted steps focused on accelerating the realization of its $300 million plan. The overall market sentiment related to tariffs continues to become more favorable, and Dana Incorporated (NYSE:DAN) remains well-placed in this area due to lower exposure in comparison to its automotive peers, says Narayan. This gives the company a relative advantage in the broader market, which remains sensitive to international trade issues. Furthermore, the potential deal can provide the company an opportunity to return additional capital to its shareholders. Dana Incorporated (NYSE:DAN) offers power-conveyance and energy-management solutions for vehicles and machinery. While we acknowledge the potential of DAN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DAN and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. Error while retrieving data Sign in to access your portfolio Error while retrieving data

Dana: Q1 Earnings Snapshot
Dana: Q1 Earnings Snapshot

Washington Post

time30-04-2025

  • Business
  • Washington Post

Dana: Q1 Earnings Snapshot

MAUMEE, Ohio — MAUMEE, Ohio — Dana Inc. (DAN) on Wednesday reported profit of $25 million in its first quarter. On a per-share basis, the Maumee, Ohio-based company said it had net income of 17 cents. Earnings, adjusted for one-time gains and costs, were 13 cents per share. The automotive equipment supplier posted revenue of $2.35 billion in the period. Dana expects full-year earnings in the range of $1.15 to $1.65 per share, with revenue in the range of $9.53 billion to $10.03 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on DAN at

Dana: Q1 Earnings Snapshot
Dana: Q1 Earnings Snapshot

Yahoo

time30-04-2025

  • Business
  • Yahoo

Dana: Q1 Earnings Snapshot

MAUMEE, Ohio (AP) — MAUMEE, Ohio (AP) — Dana Inc. (DAN) on Wednesday reported profit of $25 million in its first quarter. On a per-share basis, the Maumee, Ohio-based company said it had net income of 17 cents. Earnings, adjusted for one-time gains and costs, were 13 cents per share. The automotive equipment supplier posted revenue of $2.35 billion in the period. Dana expects full-year earnings in the range of $1.15 to $1.65 per share, with revenue in the range of $9.53 billion to $10.03 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on DAN at Sign in to access your portfolio

Have I unearthed a £1,000 Dior saddle handbag for £10 at a car boot sale? DAN HATFIELD replies
Have I unearthed a £1,000 Dior saddle handbag for £10 at a car boot sale? DAN HATFIELD replies

Daily Mail​

time22-04-2025

  • Automotive
  • Daily Mail​

Have I unearthed a £1,000 Dior saddle handbag for £10 at a car boot sale? DAN HATFIELD replies

A few friends and I regularly attend a car boot in an affluent area of the country (I'm not saying exactly where because we found some treasures and I don't want others to twig). A while back, I found this bag being sold for £10. When I got home and examined it properly, I found out it was potentially a Dior saddle handbag. Unfortunately, the strap broke recently - I roughly packed it when moving house. How much is it worth and should I spend some money to fix the strap? Nicola, via email. SCROLL TO THE BOTTOM TO FIND OUT HOW TO GET YOUR MODERN TREASURE VALUED BY DAN Dan Hatfield, resident This is Money expert valuer, replies: The British car boot season is now in full swing, and it always puts a huge smile on my face to hear about the bargains people manage to unearth. There's something gloriously unpretentious about rummaging through boot loads of bric-a-brac hoping to find buried treasure, nestled between George Foreman grills and a dubious stack of Now That's What I Call Music CDs. I adore a car boot and can spend hours strolling up and down looking for valuables. I don't even care my clothes end up stinking of friend onions from the burger van, in fact I often indulge in a quarter pounder (or two). You're absolutely on the money when it comes to attending car boots in affluent areas, this is one of my golden tips to car boot successfully. Trust me, posh postcodes are where the real gems can be found. I've secured vintage Gucci, early Westwood, and once, a Rolex. Seriously. All for less than a family lunch on the high street. Before I go completely off-piste and start waxing lyrical about my own finds, let me encourage you to do the same. Car boots aren't just a brilliant way to pick up bargains, they're also the beating heart of a more circular society where we reuse, repurpose, and recycle. Now let me climb down from my sustainably sourced soapbox and indulge in some early 2000s nostalgia, because nothing screams the noughties quite like this bag. The Dior Saddle Bag is fashion royalty. A relic of Y2K fabulousness, it conjures up images of Britney and Justin in double denim at the American Music Awards, Sarah Jessica Parker tottering around Manhattan, and Paris Hilton with a teacup chihuahua under one arm and this bag slung over the other. Designed by the infamously theatrical John Galliano during his reign at Dior, the Saddle Bag made its debut in the Spring/Summer 2000 collection. Galliano, never one to shy away from drama, took inspiration from equestrian saddles, mixing the silhouette with streetwear influences. The result is a handbag that looks like it belongs on both a catwalk and in Texas, which somehow, works. The version you've found is crafted from denim, a textile that was very much in vogue during the early 2000s. It is not one of the more common monogram canvas versions, but something rarer. However, your bag has had a rough ride recently and it shows. You mentioned that the strap broke during a house move and you would have to pay to have this fixed if you wanted to achieve the most money for this item. In its current, strap-challenged condition, your Dior Saddle Bag could easily fetch between £400 and £600 in today's vintage market. There's a fierce appetite among collectors for original Galliano-era pieces, particularly denim styles. Yours ticks all the boxes: early 2000s, rare material, cult status, and nostalgia value by the bucketload. But let's talk upgrades. If you're willing to invest £100 to £200 into a professional repair (and I stress professional — this is not a job for your local cobbler with a staple gun), that number could jump dramatically. A fully restored, authenticated Dior denim Saddle Bag can sell for upwards of £1,000. I would suggest taking it to a reputable luxury reseller like This Old Thing London who can advise on the repair needed and potentially find you a buyer. You wouldn't have to wait long to sell your bag either. Since 2018, when Dior's current creative director Maria Grazia Chiuri revived the Saddle Bag and paraded it back into the fashion mainstream, demand has skyrocketed. Everyone from Bella Hadid to Rihanna has been spotted carrying one and as always, that kind of celebrity endorsement sends vintage prices soaring. Do you really want to sell this bag though? You plucked it from obscurity in a car park somewhere in leafy suburbia and could give it a whole new lease of life yourself. In the end, whether you sell it, sling it over your shoulder, or display it on a shelf as a piece fashion history, one thing's certain, your tenner went a very, very long way. I am so delighted to see others jump on the car boot hype. They truly are a British institution and there is treasure to be found in other people's trash. I hope your next Sunday stroll will be as fruitful as this find but please, do be a little more careful when you pack up your valuable items. Send in your Modern Treasures Dan Hatfield is This Morning's money-making expert and resident pawnbroker. He is an international specialist in antiques, jewellery, diamonds and collectibles. Dan's first non-fiction book, Money Maker: Unlock Your Money Making Potential (£16.99, published by Hodder Catalyst) is available now. This is Money's Modern Treasures column is after your items and collections for valuations. Please send in as much information as possible, including photographs, to: editor@ with the email subject line: Modern Treasures We're after post-War items only please and we may contact you for further information. Dan will do his best to reply to your message in his bi-weekly column, but he won't be able to answer everyone or correspond privately with readers. Nothing in his replies constitutes regulated financial advice. Published questions are sometimes edited for brevity or other reasons. As with anything, if you are looking to sell items and collections, it is wise to get a second and third opinion - not just rely on Dan's suggestions.

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