Computer Task Group, Incorporated (CTG) Company Bio
Computer Task Group, Incorporated operates as an information technology (IT) solutions and staffing services company in North America and Europe. The company was founded in 1966 and is based in Buffalo, New York.
CTG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CTG, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Computer Task Group Inc ranked in the 89th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1751%. In terms of the factors that were most noteworthy in this DCF analysis for CTG, they are:
Computer Task Group Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 14.31% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 0% of stocks in its sector (Technology).
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 CTG, try TME, JD, WSTG, MTSI, and GLGI.
Computer Task Group ([[CTG]] +11.8%) decrease of 11% Y/Y in Q2 revenue reflected from lower demand from clients impacted by the COVID-19 pandemic.Revenue from Solutions increased to 38% of total revenue and direct profit increased 300 bps to 28.5%.Operating and adj. operating margin increased 30 bps and 83 bps to 2.1% and 3.2% respectively.The rise in...