ANGI Homeservices operates a local services marketplace and consumer review site in the United States. The company provides marketplace to research, shop for, and purchase local services for home, health, and automotive service needs. The company was founded in 1995 and is based in Indianapolis, Indiana.
ANGI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for ANGI Homeservices Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that ANGI Homeservices Inc ranked in the 63th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 106% on a DCF basis. The most interesting components of our discounted cash flow analysis for ANGI Homeservices Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 2.99 years, is 0.62% -- higher than 83.89% of stocks in our DCF forecasting set.
ANGI Homeservices Inc's effective tax rate, as measured by taxes paid relative to net income, is at 195 -- greater than 98.96% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 9. This value is greater than 75.85% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ANGI, try DAKT, MODN, IPHI, ERIC, and COUP.
KeyBanc initiated coverage of 14 popular tech stocks on Tuesday and is bullish on the long-term opportunities created by the COVID-19 pandemic. Online Services: Patterson said ANGI Homeservices has been improving its execution and is benefitting from an acceleration in digital home services. “We believe the next leg of price appreciation is driven by improved supply capacity, increased customer loyalty, and margin expansion,” Justin Patterson wrote in a note. Patterson said Frontdoor is making progress with its on-demand opportunity and cost-cutting initiatives. “However, until the Company can achieve >10% y/y revenue growth, we believe it will be difficult for shares to re-rate,” he wrote. Finally, Patterson said Yelp has improved its product and its user monetization, but it also face...
ANGI Homeservices (ANGI) says in a filing that President and Chief Operating Officer Craig Smith will step down, effective Dec. 31. He'll continue to advise the company for a year to ensure a smooth transition, and will draw an advisory fee equal to his current base salary of $500,000 for...
Investment Thesis Based on analysts' consensus EPS estimates, ANGI Homeservices (ANGI) is not attractive at current share price levels. While profitable, and with a strong balance sheet, ANGI has not fulfilled the promise at the time of merger of Angies' List and IAC/InterActiveCorp's (IAC) HomeAdvisor. At that time, 2017 pro...
Robert Honeywill on Seeking Alpha | August 26, 2020