GTT Communications operates as an Internet Protocol based networking company. It offers private, public, and hybrid cloud networking; high bandwidth IP transit for content delivery and hosting applications; on-demand and high-demand network capacity to support varying needs; and network-to-network carrier interconnects. The company was founded in 2005 and is based in McLean, Virginia.
GTT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for GTT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that GTT Communications Inc ranked in the 53th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 47.33%. As for the metrics that stood out in our discounted cash flow analysis of GTT Communications Inc, consider:
As a business, GTT is generating more cash flow than only 14.63% of positive cash flow stocks in the Communication Services.
8% of the company's capital comes from equity, which is greater than just 2.92% of stocks in our cash flow based forecasting set.
GTT Communications Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
TSU, VZ, BCE, CHT, and ORAN can be thought of as valuation peers to GTT, in the sense that they are in the Communication Services sector and have a similar price forecast based on DCF valuation.
Moody's Investors Service, ("Moody's") downgraded GTT Communications, Inc.'s ("GTT") corporate family rating (CFR) to B3 from B2 as well as the company's probability of default rating (PDR) to B3-PD from B2-PD, the rating on the company's senior secured facilities to B3 from B2 and the rating on the company's 2024 senior unsecured notes to Caa2 from Caa1. The ratings are on review for further downgrade.
GTT operates a global communications network, providing telecommunications services to large, multinational enterprises, carriers, and governments across five continents. Offerings include wide-area networks, Internet services (including Internet transit), voice, and other transport and infrastructure services. GTT's network consists primarily of leased assets over long-haul routes and connects in over 600 data centers worldwide. The firm uses other carriers for last-mile connections, and its model results in low capital spending needs. GTT relies heavily on acquisitions to expand its footprint. Customers primarily located in the United States account for about 40% of the firm's revenue, with most non-U.S. revenue coming from customers primarily in Europe.
New York, New York--(Newsfile Corp. - September 4, 2020) - Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of GTT Communications, Inc. (NYSE: GTT) resulting from allegations that GTT may have issued materially misleading business information to the investing public.On August 10, 2020, GTT filed a Notification of Late Filing with the U.S. Securities and Exchange Commission ("SEC"), stating that the ...
BOULDER, Colo.--(BUSINESS WIRE)--Zayo Group Holdings, Inc., the global leader in Communications Infrastructure, today announced the appointment of Jesper Aagaard as Zayo’s Managing Director of Europe. In this role, Aagaard will be instrumental in driving growth in Europe and shaping Zayo’s overall strategy for the region. Mr. Aagaard will report directly to Zayo’s CEO, Dan Caruso. Aagaard joins Zayo from GTT Communications where he served as division president of Europe and drove GTT’s successf
NEW YORK, Aug. 21, 2020 (GLOBE NEWSWIRE) -- Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of GTT Communications, Inc. (NYSE: GTT) resulting from allegations that GTT may have issued materially misleading business information to the investing public.On August 10, 2020, GTT filed a Notification of Late Filing with the U.S. Securities and Exchange Commission ("SEC"), stating that the Company "is unable to file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 (the ‘Form 10-Q') within the prescribed time period without unreasonable effort or expense." GTT's SEC filing disclosed that "[i]n the course of closing the Company's books for the quarter e...