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:
We started the process of determining a valid price forecast for A10 Networks Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that A10 Networks Inc ranked in the 51th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 3.5% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of A10 Networks Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 717.81; that's higher than 97.58% 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 3%; for context, that number is higher than 55.76% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of A10 Networks Inc? See GDDY, OSIS, COUP, QLYS, and FISV.
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