Cornerstone OnDemand provides cloud-based learning and talent management software, offering recruitment, onboarding, training and collaboration, to performance management, compensation, succession planning and analytics. The company was founded in 1999 and is based in Santa Monica, California.
CSOD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CSOD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Cornerstone OnDemand Inc ranked in the 55th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 95% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Cornerstone OnDemand Inc, consider:
Its compound free cash flow growth rate, as measured over the past 5 years, is 0.42% -- higher than 81.25% of stocks in our DCF forecasting set.
Cornerstone OnDemand Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 0.94. This coverage rate is greater than that of just 23.73% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 8. This value is greater than 76.86% stocks in the Technology sector that generate free cash flow.
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 CSOD, try LDOS, VPG, PAYC, AMOT, and MCHP.