Euronet Worldwide offers payment and transaction processing solutions to financial institutions, retailers, service providers and individual consumers. The company was founded in 1994 and is based in Leawood, Kansas.
EEFT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Euronet Worldwide Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Euronet Worldwide Inc ranked in the 54th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 76.33%. As for the metrics that stood out in our discounted cash flow analysis of Euronet Worldwide Inc, consider:
EEFT's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 26.17% of tickers in our DCF set.
Euronet Worldwide Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 12.97. This coverage rate is greater than that of 77.59% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 7. This value is greater than just 10.4% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ZBRA, CSOD, AMOT, NOW, and OTEX can be thought of as valuation peers to EEFT, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.