Extreme Networks, Inc. provides wired and wireless network infrastructure equipment, software, and services for enterprises, data centers, and service providers. The company was founded in 1996 and is based in San Jose, California.
EXTR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Extreme Networks Inc. To summarize, we found that Extreme Networks Inc ranked in the 28th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 63.83%. As for the metrics that stood out in our discounted cash flow analysis of Extreme Networks Inc, consider:
The company's balance sheet shows it gets 68% of its capital from equity, and 32% of its capital from debt. Notably, its equity weight is greater than merely 10.87% of US equities in the Technology sector yielding a positive free cash flow.
Extreme Networks Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Extreme Networks Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -2.64. This coverage rate is greater than that of only 16.05% of stocks we're observing for the purpose of forecasting via discounted cash flows.
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 EXTR, try ADSK, MANT, AKAM, CRUS, and NVDA.
Extreme Networks, Inc. (Nasdaq: EXTR), a cloud-driven networking company, today announced plans to release financial results for its second fiscal quarter, ended December 31, 2020. The company will announce before market open on Wednesday, January 27, 2021, followed by an earnings conference call and webcast at 8:00 a.m. ET.
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Extreme Networks, Inc. (Nasdaq: EXTR), a cloud-driven networking company, today announced it is the first networking provider to offer a native cloud management platform located and running in Canada. ExtremeCloud IQ subscribers can now leverage Microsoft Azure data centres in Toronto to manage their enterprise networks, ensuring data privacy and sovereignty for citizens and providing a local option for global organizations doing business in the region. Additionally, Extreme announced it is committed to expanding its highly skilled software engineering organization in Thornhill, Ontario by 10 percent with local talent. Extreme is excited to offer a professional development program targeting interns and new hires from Canada's top universities in technology, including the Universities of...