EVO Payments International, LLC provides merchant acquiring and processing solutions for merchants, independent software vendors, financial institutions, independent sales organizations, government organizations, and multinational corporations in North America and Europe. It offers POS terminals and fully integrated software solutions; acquiring and payment transaction processing services; and fraud and loss prevention services. The company also provides various services, such as accelerated funding, advances on future transactions, cash back, check guarantees, dynamic currency conversion, dynamic transaction references, gift and loyalty programs, pre-paid cards, pre-litigation dunning, receivables management, and taxfree services. The company is based in Atlanta, Georgia. EVO Payments International, LLC operates as a subsidiary of EVO Investco, LLC.
EVOP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for EVOP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that EVO Payments Inc ranked in the 0th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for EVO Payments Inc ended up being:
The company's balance sheet shows it gets 65% of its capital from equity, and 35% of its capital from debt. Notably, its equity weight is greater than just 9.29% of US equities in the Technology sector yielding a positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 1.62 years, is -0.55% -- higher than only 2.19% of stocks in our DCF forecasting set.
EVO Payments Inc's effective tax rate, as measured by taxes paid relative to net income, is at 21 -- greater than 82.01% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CHNG, CHWY, CRNC, CSPI, and CVET can be thought of as valuation peers to EVOP, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.