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 8th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 95.83%. 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 54% of its capital from equity, and 46% of its capital from debt. Its equity weight surpasses that of merely 9.49% of free cash flow generating stocks in the Technology sector.
The company's compound free cash flow growth rate over the past 1.12 years comes in at -0.41%; that's greater than only 3.32% of US stocks we're applying DCF forecasting to.
EVO Payments Inc's weighted average cost of capital (WACC) is 10%; for context, that number is higher than 73.11% 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 EVOP, try AYX, ELSE, MRVL, SONO, and AVYA.
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