GrubHub provides an online and mobile platform for restaurant pick-up and delivery orders in the United States. The company was founded in 1999 and is based in Chicago, Illinois.
GRUB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for GRUB, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that GrubHub Inc ranked in the 8th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of GrubHub Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is -5.18 -- which is good for besting only 15.31% of its peer stocks (US stocks in the Technology sector with positive cash flow).
The company's compound free cash flow growth rate over the past 5.51 years comes in at -0.03%; that's greater than only 20.56% of US stocks we're applying DCF forecasting to.
The business' balance sheet reveals debt to be 9% of the company's capital (with equity being the remaining amount). Approximately only 23.89% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of GrubHub Inc? See AVYA, CALX, DT, LPTH, and MTSC.
CHICAGO, Jan. 14, 2021 /PRNewswire/ -- Grubhub Inc. (NYSE: GRUB), a leading online and mobile food-ordering and delivery marketplace, today announced that Devry Boughner Vorwerk will be joining the company as chief corporate affairs officer, effective Jan. 19. Vorwerk will oversee brand,…