Conduent Incorporated provides business process services for healthcare, public sector, and commercial industries in the United States. The Company offers customers in various areas, which include health solutions, learning services, digital payments, legal and compliance solutions, human resources, finance and accounting, procurement solutions and digital transformation. The company is based in Basking Ridge, New Jersey.
CNDT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for CONDUENT Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that CONDUENT Inc ranked in the 9th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 92.5%. In terms of the factors that were most noteworthy in this DCF analysis for CNDT, they are:
The compound growth rate in the free cash flow of CONDUENT Inc over the past 4.11 years is -0.26%; that's better than only 3.19% of cash flow producing equities in the Technology sector, where it is classified.
27% of the company's capital comes from equity, which is greater than only 11.46% of stocks in our cash flow based forecasting set.
CONDUENT Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -9.91. This coverage rate is greater than that of merely 8.46% 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
Want more companies with a valuation profile/forecast similar to that of CONDUENT Inc? See CLRO, INTZ, KLIC, MRVL, and SATS.
Introduction and history Conduent (CNDT) is a global BPO (Business process outsourcing) company, with expertise in transaction-intensive processing, automation, and analytics. With annual revenues of c.$4.4 billion, it is estimated to have a market share of c.2.2% of the +$200 billion valued global BPO market. The company reports under three...
The Alpha Sieve on Seeking Alpha | September 23, 2020
Conduent (CNDT) and Servicing Solutions selects Conduent’s Loan Manager loan servicing application services.Conduent currently manages more than $120B in consumer loan assets.“There is a significant growth opportunity in loan servicing for companies that can provide a differentiated, high quality customer experience,” said Louis Ochoa, president and CEO of Servicing Solutions. Press Release...
NEW YORK, Aug. 7, 2020 /PRNewswire/ -- InvestorsObserver issues critical PriceWatch Alerts for BNGO, CNDT, OPGN, UBER, and MGM. To see how InvestorsObserver's proprietary scoring system rates these stocks, view the InvestorsObserver's PriceWatch Alert by selecting the corresponding link….