GreenSky, LLC offers consumer loan brokerage services through its online platform. The company operates as a third party service provider and program administrator for federally insured, federal, and state chartered banks that provide consumer loans. It helps businesses to offer credit to their customers. The company provides installment loans and revolving credit products; and offers credit programs for home improvement merchants, furniture retailers, and elective medical providers. It serves large, small, and medium businesses and consumers through merchant, provider, and retailer networks in the United States. The company is based in Atlanta, Georgia. GreenSky, LLC operates as a subsidiary of GS Holdings LLC.
GSKY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for GSKY, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that GreenSky Inc ranked in the 10th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 92.17%. In terms of the factors that were most noteworthy in this DCF analysis for GSKY, they are:
The company's balance sheet shows it gets 73% of its capital from equity, and 27% of its capital from debt. Notably, its equity weight is greater than only 21.7% of US equities in the Technology sector yielding a positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 1.16 years, is -0.41% -- higher than merely 3.2% of stocks in our DCF forecasting set.
GreenSky Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
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 GreenSky Inc? See ON, IIVI, GWRE, LTRPA, and QADB.
Good morning, everyone, and thank you for joining us today for the Midland States Bancorp second quarter 2020 earnings call. Joining us from Midland's management team are Jeff Ludwig, President and Chief Executive Officer, and Eric Lemke, Chief Financial Officer.
Looking into the current session, GreenSky Inc. (NASDAQ: GSKY) shares are trading at $5.15, after a 6.30% rise. Moreover, over the past month, the stock increased by 0.78%, but in the past year, fell by 56.28%. Shareholders might be interested in knowing whether the stock is undervalued, even if the company is performing up to par in the current session.The stock is currently higher from its 52 week low by 68.86%. Assuming that all other factors are held constant, this could present itself as an opportunity for investors trying to diversify their portfolio with Infrastructure Software stocks, and capitalize on the lower share price observed over the year.The P/E ratio measures the current share price to the company's earnings per share. It is used by long-term investors to analyze t...
The financial regulations require hedge funds and wealthy investors that exceeded the $100 million equity holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn't the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F […]
GreenSky (GSKY) will use the proceeds a $75M incremental term loan B facility for general corporate purposes and to enhance its liquidity position.The incremental term loan is prices at LIBOR + 450 basis points with a 1% LIBOR floor.Will have the same security, maturity, principal amortization, prepayment, and covenant terms as...