ClearOne, Inc. designs, develops, and sells conferencing, collaboration, streaming, and digital signage solutions for audio/voice and visual communications in the United States and internationally. The company was founded in 1983 and is based in Salt Lake City, Utah.
CLRO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Clearone Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Clearone Inc ranked in the 8th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 93%. As for the metrics that stood out in our discounted cash flow analysis of Clearone Inc, consider:
In the past 5.38 years, Clearone Inc has a compound free cash flow growth rate of -0.24%; that's higher than only 3.48% of free cash flow generating stocks in the Technology sector.
Clearone Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -34.51. This coverage rate is greater than that of merely 3.76% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CNDT, INTZ, KLIC, MRVL, and SATS can be thought of as valuation peers to CLRO, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.