ChannelAdvisor Corporation provides software-as-a-service solutions worldwide. The companys solutions allow its retailers and manufacturers to integrate, manage, monitor, and optimize their merchandise sales in various online channels. The company was founded in 2001 and is based in Morrisville, North Carolina.
ECOM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Channeladvisor Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Channeladvisor Corp ranked in the 72th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 227.33% on a DCF basis. The most interesting components of our discounted cash flow analysis for Channeladvisor Corp ended up being:
The company has produced more trailing twelve month cash flow than only 19.31% of its sector Technology.
The business' balance sheet suggests that 2% of the company's capital is sourced from debt; this is greater than only 7.93% of the free cash flow producing stocks we're observing.
Channeladvisor Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -13.95. This coverage rate is greater than that of merely 5.86% 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
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ECOM, try COUP, ENPH, TTMI, CCIHY, and CIEN.