GoPro develops devices, such as cameras, premium accessories, including battery BacPac, smart remote, and LCD touch BacPac accessories, and mounts comprising equipment-based mounts consisting of helmet, handlebar, roll bar, and grip and tripod mounts that enable consumers to capture content while engaged in a range of activities, as well as mounts that enable customers to wear the mount on their bodies, such as wrist housings, chest harnesses, and head straps. The company was founded in 2004 and is based in San Mateo, California.
GPRO 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 GoPro Inc. To summarize, we found that GoPro Inc ranked in the 18th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for GPRO, they are:
The company's compound free cash flow growth rate over the past 5.53 years comes in at -0.09%; that's greater than only 14.59% of US stocks we're applying DCF forecasting to.
GoPro Inc's weighted average cost of capital (WACC) is 10%; for context, that number is higher than 72.32% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than 69.05% of stocks in its sector (Technology).
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 GPRO, try ESE, OMCL, PAYC, SITM, and TESS.
GoPro (NASDAQ:GPRO) showed a loss in earnings since Q2, totaling $8.85 million. Sales, on the other hand, increased by 108.95% to $280.51 million during Q3. GoPro collected $134.25 million in revenue during Q2, but reported earnings showed a $44.91 million loss.Why ROCE Is Significant Return on Capital Employed is a measure of yearly pre-tax profit relative to capital employed by a business. Changes in earnings and sales indicate shifts in a company's ROCE. A higher ROCE is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROCE suggests the opposite. In Q3, GoPro posted an ROCE of 0.06%.Keep in mind, while ROCE is a good measure of a company's recent performance, it is not a highly reliable predictor of...
Investment Thesis GoPro (GPRO) has been left for dead. The company is being valued at close to $1.4 billion market cap and I make a reasonable argument that by this time next year, GoPro's subscription business model and direct to consumer operation will provide the company with the foundation it...
Michael Wiggins De Oliveira on Seeking Alpha | January 18, 2021