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:
We started the process of determining a valid price forecast for GrubHub Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that GrubHub Inc ranked in the 25th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 59.83%. The most interesting components of our discounted cash flow analysis for GrubHub Inc ended up being:
The business' balance sheet suggests that 8% of the company's capital is sourced from debt; this is greater than only 20.2% of the free cash flow producing stocks we're observing.
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 12.45% 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 84.5% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DOCU, FARO, INFY, MTCH, and SMTX 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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StormX, the popular gamified micro-tasks, and shopping rewards platform has just announced support for Yearn Finance (YFI)—the most popular yield farming token. Now, users shopping at StormX-affiliate retailers will be able to earn YFI, in addition to a range of other cryptocurrencies as cashback by shopping at their favorite retailers. The app currently supports a huge number of popular online stores, such as Microsoft, eBay, Nike, Samsung, Gamestop, GrubHub, and hundreds of others. After a […]