HealthEquity Inc. provides various solutions for managing health care accounts, health reimbursement arrangements, and flexible spending accounts for health plans, insurance companies, and third-party administrators in the United States. The company was founded in 2002 and is based in Draper, Utah.
HQY 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 Healthequity Inc. To summarize, we found that Healthequity Inc ranked in the 39th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Healthequity Inc, consider:
Its compound free cash flow growth rate, as measured over the past 5.45 years, is 0.51% -- higher than 80.45% of stocks in our DCF forecasting set.
Healthequity Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 11. This value is greater than 88.28% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ADI, CDK, FIVN, UEIC, and ALRM can be thought of as valuation peers to HQY, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Introduction HealthEquity (HQY) noticeably under-performed the S&P 500 in the past year, with much of the pandemic-related losses not yet recovered. This article discusses the company’s performance in 2020 along with research data on the HSA market to explain the long runway ahead for the HSA sector. Source: Seeking Alpha...
Hidden Opportunities on Seeking Alpha | September 21, 2020