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 70th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Extreme Networks Inc, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 42. Notably, its equity weight is greater than only 7.61% 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 only 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 -3.48. This coverage rate is greater than that of only 9.01% 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
IIIV, MLNX, ERIC, GSB, and SPOT can be thought of as valuation peers to EXTR, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.