Coupa Software Inc. provides cloud-based spend management platform. The company’s platform connects organization with suppliers globally; and provides greater visibility into and control over how companies spend money, as well as enables businesses to achieve savings that drive profitability. The company was founded in 2006 and is based in San Mateo, California.
COUP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Coupa Software Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Coupa Software Inc ranked in the 51th percentile in terms of potential gain offered. As for the metrics that stood out in our discounted cash flow analysis of Coupa Software Inc, consider:
The compound growth rate in the free cash flow of Coupa Software Inc over the past 3.01 years is 1.19%; that's higher than 89.74% of free cash flow generating stocks in the Technology sector.
The business' balance sheet suggests that 6% of the company's capital is sourced from debt; this is greater than merely 20.07% of the free cash flow producing stocks we're observing.
Coupa Software Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.01. This coverage rate is greater than that of only 20.39% 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
GDDY, CPSI, AMZN, CCIHY, and FISV can be thought of as valuation peers to COUP, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
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NEW YORK, Jan. 6, 2021 /PRNewswire/ -- SecurityScorecard, the global leader in cybersecurity ratings, today announced it has integrated with Coupa Software (NASDAQ: COUP) to offer its Security Ratings data in the Coupa Business Spend Management (BSM) Platform. Coupa certified…