The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Digital Turbine Inc. To summarize, we found that Digital Turbine Inc ranked in the 70th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 208.5%. In terms of the factors that were most noteworthy in this DCF analysis for APPS, they are:
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than only 4.04% of the free cash flow producing stocks we're observing.
Digital Turbine Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 0% of stocks in its sector (Technology).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SYNA, ONTO, EGAN, NSYS, and DTST can be thought of as valuation peers to APPS, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
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...