A10 Networks provides application delivery controllers for optimizing data center performance, carrier grade networking products that offer address and protocol translation services for service provider networks, and a distributed denial of service threat protection system for network-wide security protection. The company was founded in 2004 and is based in San Jose, California.
ATEN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ATEN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that A10 Networks Inc ranked in the 54th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 15.83%. The most interesting components of our discounted cash flow analysis for A10 Networks Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 717.81; that's higher than 97.59% of US stocks in the Technology sector that have positive free cash flow.
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately only 0.05% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
ATEN'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 59.75% of tickers in our DCF set.
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 ATEN, try PLXS, GIB, SYNA, AVNW, and FLT.