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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for GrubHub Inc. To summarize, we found that GrubHub Inc ranked in the 26th 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:
The business' balance sheet reveals debt to be 9% of the company's capital (with equity being the remaining amount). Approximately just 19.97% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
GrubHub Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -4.63. This coverage rate is greater than that of just 12.38% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, GrubHub Inc experienced a tax rate of about 24% over the past twelve months; relative to its sector (Technology), this tax rate is higher than 84.55% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ATVI, INFY, MTCH, DOCU, and FARO can be thought of as valuation peers to GRUB, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Back in April 2020, we introduced two new indexes – the Cornell Capital Group (CCG) Quarantine Index and the CCG anti-Quarantine index. The Quarantine Index was composed of what might be called stay at home, work from home stocks. Typical companies were Amazon, Zoom, Netflix, and Grubhub. The anti-Quarantine Index was composed of get up […] The post Revisiting the CCG Quarantine Indexes appeared first on ValueWalk .
An employee at S&P Dow Jones Indices was arrested on insider trading charges on Monday for allegedly tipping an associate about when companies such as T-Mobile, Grubhub and others were added to or removed from S&P indices.
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