Criteo SA engages in the digital performance marketing in France and internationally. The company leverages granular data to engage and convert customers on behalf of its advertiser clients. The company was founded in 2005 and is based in Paris, France.
CRTO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CRTO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Criteo SA ranked in the 69th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 182.33%. As for the metrics that stood out in our discounted cash flow analysis of Criteo SA, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 21.08; that's higher than 88.97% of US stocks in the Consumer Cyclical sector that have positive free cash flow.
Criteo SA's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 9.35% of tickers in our DCF set.
CRTO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 9.35% of tickers in our DCF set.
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 Criteo SA? See MGA, QNST, BDL, SBH, and TSCO.
The Schwab Fundamental U.S. Small Company Index exchange-traded fund is trading 16% lower in 2020 while the broader S&P 500 index gained 2% over the same period. Locking in these little-known winners at today's low share prices will pay off through impressive returns for years to come. Shares of online ad-targeting specialist Criteo (NASDAQ: CRTO) are trading 25% lower year to date.