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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Channeladvisor Corp. To summarize, we found that Channeladvisor Corp ranked in the 73th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for ECOM, they are:
As a business, ECOM is generating more cash flow than only 19.49% of positive cash flow stocks in the Technology.
The business' balance sheet suggests that 2% of the company's capital is sourced from debt; this is greater than just 8.08% 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 5.96% 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, SNX, CIEN, NCR, and SOFO.