Evertec provides various transaction processing services to financial institutions, merchants, corporations, and government agencies in Latin America and the Caribbean. The company was founded in 2004 and is based in San Juan, Puerto Rico.
EVTC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for EVERTEC Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that EVERTEC Inc ranked in the 62th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 122.17%. The most interesting components of our discounted cash flow analysis for EVERTEC Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.81 years, is 0.25% -- higher than 71.03% of stocks in our DCF forecasting set.
75% of the company's capital comes from equity, which is greater than 57.63% of stocks in our cash flow based forecasting set.
The weighted average cost of capital for the company is 7. This value is greater than just 11.7% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of EVERTEC Inc? See DTST, CY, PANW, CACI, and SVMK.