FARO Technologies designs, develops, manufactures, markets, and supports software driven, three-dimensional (3-D) measurement, imaging, and realization systems for manufacturing, industrial, architecture, surveying, building construction, and law enforcement applications. The company was founded in 1981 and is based in Lake Mary, Florida.
FARO 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 Faro Technologies Inc. To summarize, we found that Faro Technologies Inc ranked in the 34th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Faro Technologies Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 99. Its equity weight surpasses that of 92.64% of free cash flow generating stocks in the Technology sector.
The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately merely 3.97% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Faro Technologies Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -80.73. This coverage rate is greater than that of only 1.89% 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 FARO, try SLAB, MEI, NXGN, QCOM, and TRMB.