Preformed Line Products Company (PLPC) DCF Valuation
TGM's two-stage DCF values Preformed Line Products Company (PLPC) between $147.86 and $259.25 depending on assumptions, with a base case of $192.56. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use)), fading to 2.5% long-run; the discount rate (8.6%) reflects its beta.
What would today's price require?
$375.42 is justified only if free cash flow grows about +25.0% a year (fading to 2.5% long-run) at a 8.6% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 4.7%/yr | 9.6% | $147.86 |
| Base case | 7.7%/yr | 8.6% | $192.56 |
| Optimistic | 10.7%/yr | 7.6% | $259.25 |
| Analyst DCF (FMP) | independent reference — different model | $85.97 | |
Current Price
$375.42
Market-Implied Growth
+25.0%/yr
vs -0.7% 5Y actual
Model Scenario Range
$147.86 – $259.25
model output — not a price target
PLPC DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for PLPC (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $43.1M · 0.00B shares · net cash $42.0M
Estimated Fair Value
$229.08
-39.0% vs $375.42
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 7.7%/yr FCF growth and 10-year horizon fixed. Green = above today's $375.42; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.6% | $296 | $318 | $346 | $381 | $428 |
| 7.6% | $245 | $259 | $276 | $296 | $322 |
| 8.6% | $209 | $218 | $229 | $242 | $257 |
| 9.6% | $181 | $188 | $196 | $204 | $214 |
| 10.6% | $160 | $165 | $170 | $177 | $183 |
About Preformed Line Products Company
Preformed Line Products Company (PLPC), along with its subsidiaries, specializes in the design and manufacturing of a comprehensive range of products and integrated systems. These solutions are vital for constructing and maintaining overhead, ground-level, and underground network infrastructures across various industries, including energy, telecommunications, cable operation, and information technology. Their offerings encompass specialized formed wire products engineered to support, safeguard, terminate, and secure power conductors and communication cables, while also managing cable dynamics. Furthermore, PLPC provides diverse hardware components intended to brace and shield transmission conductors, such as spacers, spacer-dampers, stockbridge dampers, corona suppression devices, and various compression fittings used in dead-end applications. The company also produces protective closures essential for shielding fixed-line communication networks, including both copper and fiber optic cables, from moisture, environmental hazards, and other potential contaminants. Additional products include hardware assemblies, pole line hardware, resale items, underground connectors, solar hardware systems, guy markers, tree guards, fiber optic cable markers, pedestal markers, and urethane products, serving a multitude of applications in the energy, renewable energy, communications, cable, and specialized sectors. PLPC serves a global clientele, reaching public and private energy utilities, communication companies, cable operators, financial institutions, government agencies, contractors, subcontractors, distributors, and value-added resellers throughout the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions. The company markets its products via both an internal direct sales force and through manufacturing representatives. Established in 1947, Preformed Line Products Company is headquartered in Mayfield, Ohio.
- Sector
- Industrials
- Industry
- Electrical Equipment & Parts
- CEO
- Dennis F. McKenna