We started the process of determining a valid price forecast for Digital Turbine Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Digital Turbine Inc ranked in the 69th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 191.17% on a DCF basis. The most interesting components of our discounted cash flow analysis for Digital Turbine Inc ended up being:
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than merely 3.8% of the free cash flow producing stocks we're observing.
As a business, Digital Turbine Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Technology), this tax rate is higher than only 0% of stocks generating 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 APPS, try SANM, TAIT, AVNW, DTST, and TTEC.
We were holders of Digital Turbine (APPS) in our old portfolio when we bought in February this year at $7.15. Buying just before the pandemic selloff, it's sort of funny that this delivered the returns that it did. We have now also taken a position in our new SHU Growth...
Shareholders Unite on Seeking Alpha | August 13, 2020
Digital Turbine (APPS) wrapped after-hours trading up 18.2% after beating on top and bottom lines in its fiscal Q1 earnings report, a "breakout" where revenues nearly doubled and the company's swing to net profit was better than expected. GAAP net income of $9.9M compared to a year-ago net loss of...