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:
Below please find a table outlining a discounted cash flow forecast for GPRO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that GoPro Inc ranked in the 25th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 66.5%. The most interesting components of our discounted cash flow analysis for GoPro Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.71 years, is 0% -- higher than only 24.56% of stocks in our DCF forecasting set.
GoPro Inc's weighted average cost of capital (WACC) is 10%; for context, that number is higher than 72.29% 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 69.39% of stocks in its sector (Technology).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AKAM, CNDT, COHU, DOX, and LEAF can be thought of as valuation peers to GPRO, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Oppenheimer is constructive on GoPro ([[GPRO]] +3.6%) after the company's announcement on the launch of the new HERO9 Black flagship product and subscription service. "We believe that these major updates, emphasis on subscription-based services and direct-to-consumer sales, and timely product reveal before Black Friday and Holiday season will bolster 4Q...
GoPro has unveiled its latest device, the Hero9 Black, which the firm has labelled a “beast” of a product. The updated camera has a new sensor capable of capturing 5K resolution video and 20-megapixel photos.