Five9, Inc. provides cloud software for contact centers in the United States and internationally. It offers virtual contact center cloud platform that acts as the hub for interactions between its clients and their customers, enabling contact center operations focused on inbound or outbound customer interactions in a single unified architecture. The company was founded in 2001 and is based in San Ramon, California.
FIVN 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 Five9 Inc. To summarize, we found that Five9 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 163.67%. As for the metrics that stood out in our discounted cash flow analysis of Five9 Inc, consider:
In the past 3.32 years, Five9 Inc has a compound free cash flow growth rate of 1.14%; that's higher than 90.46% of free cash flow generating stocks in the Technology sector.
The business' balance sheet suggests that 5% of the company's capital is sourced from debt; this is greater than merely 12.86% of the free cash flow producing stocks we're observing.
Five9 Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 0.68. This coverage rate is greater than that of merely 22.78% 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 FIVN, try QLYS, AMKR, SVMK, YY, and SNX.