CDK Global provides integrated information technology and digital marketing/advertising solutions to the automotive retail industry worldwide. The company operates through three segments: Automotive Retail North America, Automotive Retail International, and Digital Marketing. The company was founded in 1972 and is based in Hoffman Estates, Illinois.
CDK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CDK, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that CDK Global Inc ranked in the 42th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of CDK Global Inc, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 70. Its equity weight surpasses that of only 12.27% of free cash flow generating stocks in the Technology sector.
CDK Global Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 8.95% of tickers in our DCF set.
CDK Global Inc's effective tax rate, as measured by taxes paid relative to net income, is at 21 -- greater than 82.98% of US stocks with positive 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 CDK, try ADBE, CTXS, AMAT, CTS, and IT.
Computerized Vehicle Registration (CVR), the national market leader in registration and titling solutions, today announced a new partnership with Automotive Titling Corporation (ATC), a Colorado-based company that provides out-of-state title and registration services to auto dealers throughout the United States. These two large brands in the electronic vehicle registration (EVR) space are combining forces to provide an enhanced and faster vehicle registration experience for car buyers in all 50 states.
HOFFMAN ESTATES, Ill.--(BUSINESS WIRE)--CDK Global, Inc. (Nasdaq: CDK), a leading retail automotive technology company, today announced Eric Guerin will join the Company as executive vice president and chief financial officer (CFO) on January 18. The appointment of Guerin will enable Joe Tautges to complete his transition to the role of chief operating officer (COO) early in 2021. In his role, Guerin will be responsible for driving the Company’s financial strategy, growth opportunities, and per
HOFFMAN ESTATES, Ill.--(BUSINESS WIRE)--CDK Global, Inc. (Nasdaq: CDK), a leading retail automotive technology company, announced today that David Hahn has joined the company as chief information security officer (CISO). He will also be a member of the executive leadership team. In his role, Hahn is responsible for developing a global strategy and executing the roadmap for managing technology risk and information security across the company’s IT, product engineering, and research and developmen