Ebix Inc. is a supplier of on-demand software and e-commerce services to the insurance, financial and healthcare industries, providing end-to-end solutions ranging from infrastructure exchanges, carrier systems, agency systems and risk compliance solutions to custom software development for all entities involved in the insurance industry. The company was founded in 1976 and is based in Atlanta, Georgia.
EBIX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Ebix Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Ebix Inc ranked in the 32th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 44.5%. As for the metrics that stood out in our discounted cash flow analysis of Ebix Inc, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 48. Its equity weight surpasses that of just 8.29% of free cash flow generating stocks in the Technology sector.
Its compound free cash flow growth rate, as measured over the past 5.75 years, is -0.03% -- higher than only 24.94% of stocks in our DCF forecasting set.
Ebix Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 11.9% of tickers in our DCF set.
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 EBIX, try MIME, IT, ADSK, DBX, and SLAB.
Shares of Ebix (NASDAQ:EBIX) rose 2.2% in pre-market trading after the company reported Q1 results.Quarterly Results Earnings per share decreased 7.69% year over year to $0.96, which beat the estimate of $0.86.Revenue of $137,876,000 lower by 3.53% year over year, which missed the estimate of $152,850,000.Outlook Ebix hasn't issued any earnings guidance for the time being.Ebix hasn't issued any revenue guidance for the time being.Conference Call Details Date: May 11, 2020View more earnings on EBIXWebcast URL: https://edge.media-server.com/mmc/p/uvtve6kdPrice Action Company's 52-week high was at $53.94Company's 52-week low was at $8.75Price action over last quarter: down 13.07%Company Overview Ebix Inc is a provider of enterprise cloud e-commerce solutions for the insurance, finance, and...