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:
Below please find a table outlining a discounted cash flow forecast for COUP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Coupa Software Inc ranked in the 55th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 38.33%. In terms of the factors that were most noteworthy in this DCF analysis for COUP, they are:
The compound growth rate in the free cash flow of Coupa Software Inc over the past 2.5 years is 1.29%; that's higher than 91.32% of free cash flow generating stocks in the Technology sector.
The business' balance sheet suggests that 4% of the company's capital is sourced from debt; this is greater than merely 11.53% 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 -1.06. This coverage rate is greater than that of only 18.52% 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 Coupa Software Inc? See COMM, EXTR, NTCT, SYNA, and CACI.
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