TD Ameritrade Holding Corporation (AMTD) Company Bio
TD Ameritrade provides securities brokerage services and related technology-based financial services to retail investors, traders, and independent registered investment advisors (RIAs) in the United States. The company was founded in 1971 and is based in Omaha, Nebraska.
AMTD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Td Ameritrade Holding Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Td Ameritrade Holding Corp ranked in the 96th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 7559.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Td Ameritrade Holding Corp ended up being:
The compound growth rate in the free cash flow of Td Ameritrade Holding Corp over the past 5.76 years is 0.65%; that's higher than 88.46% of free cash flow generating stocks in the Financial Services sector.
AMTD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 26.91% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AMTD, try JRVR, SUNS, TPRE, MCC, and NMIH.
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