Acacia Research Corporation, through its subsidiaries, invests in, develops, licenses, and enforces patented technologies in the United States. The company was founded in 1992 and is based in Newport Beach, California.
ACTG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Acacia Research Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Acacia Research Corp ranked in the 79th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Acacia Research Corp, consider:
ACTG's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than just 17.04% of tickers in our DCF set.
Acacia Research Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 8. This value is greater than merely 10.58% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Acacia Research Corp? See HNI, KE, ABM, USDP, and EML.
Though gaining nearly 50% in 2020, shares of Acacia Research (ACTG) still appear undervalued. Source Its strategic partnership with Starboard Value in November 2019 married an absolute return strategy to its previous patent protection business model. Starboard would function, primarily, as a lead generator and offer financial backing. By early...
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Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors’ consensus returns have been exceptional. In the following paragraphs, we find out […]
Shares of Acacia Research (NASDAQ:ACTG) remained unaffected after the company reported Q3 results.Quarterly Results Earnings per share rose 313.33% year over year to $0.32, which beat the estimate of ($0.02).Revenue of $19,466,000 rose by 1037.70% year over year, which beat the estimate of $400,000.Looking Ahead Earnings guidance hasn't been issued by the company for now.Revenue guidance hasn't been issued by the company for now.How To Listen To The Conference Call Date: Nov 09, 2020View more earnings on ACTGTime: 11:00 AMET Webcast URL: https://www.webcaster4.com/Webcast/Page/2371/38302Recent Stock Performance Company's 52-week high was at $4.46Company's 52-week low was at $1.75Price action over last quarter: down 12.44%Company Overview Acacia Research Corp is engaged in the acquisitio...