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ARCE Price/Volume Stats

Arco Platform Limited - Class A Common Shares (ARCE) Company Bio

Arco Platform Limited, a technology company in the education sector, provides a pedagogical system with technology-enabled features to deliver educational content to private schools in Brazil. The company’s curriculum solutions provide educational content from basic to secondary education K-12 curriculum in printed and digital formats delivered through its platform. As of March 31, 2018, it had a network consisted of 1,140 partner schools and 405,814 enrolled students. The company’s activities also comprise editing, publishing, advertising, and sale of educational content for private schools. It serves students, teachers, administrators, and parents. The company was founded in 2004 and is based in São Paulo, Brazil.

ARCE Price Forecast Based on DCF Valuation

Below please find a table outlining a discounted cash flow forecast for ARCE, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Arco Platform Ltd ranked in the 88st percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Arco Platform Ltd ended up being:

• Arco Platform Ltd'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.
• Arco Platform Ltd's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 0.5. This coverage rate is greater than that of merely 21.17% of stocks we're observing for the purpose of forecasting via discounted cash flows.
• Relative to other stocks in its sector (Technology), Arco Platform Ltd has a reliance on debt greater than just 0% of them.

For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ARCE, try HEAR, DXC, TRT, DELL, and APPS.