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 8th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of CONDUENT Inc, consider:
The company's balance sheet shows it gets 33% of its capital from equity, and 67% of its capital from debt. Notably, its equity weight is greater than only 3.55% of US equities in the Technology sector yielding a positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 4.11 years, is -0.26% -- higher than only 5.95% of stocks in our DCF 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 8.36% 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
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CNDT, try BKTI, AIRG, GSKY, GWRE, and SATS.