ExlService Holdings provides operations management, decision analytics and technology platforms to organizations in insurance, healthcare, banking and financial services, utilities, travel, and transportation and logistics, among others. The company was founded in 1999 and is based in New York, New York.
EXLS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for ExlService Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that ExlService Holdings Inc ranked in the 49th 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 EXLS, they are:
84% of the company's capital comes from equity, which is greater than 70.29% of stocks in our cash flow based forecasting set.
ExlService Holdings Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 7.09. This coverage rate is greater than that of 65.01% 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 20.01% stocks in the Technology sector that generate free cash flow.
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 EXLS, try AUDC, FLT, TEAM, ACMR, and ADI.