Intuit offers products and services to help manage small businesses and payroll processing, personal finance, and tax preparation and filing. The company was founded in 1983 and is based in Mountain View, California.
INTU 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 Intuit Inc. To summarize, we found that Intuit Inc ranked in the 22th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 67.5%. The most interesting components of our discounted cash flow analysis for Intuit Inc ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 158; that's higher than 96.4% of US stocks in the Technology sector that have positive free cash flow.
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately merely 13.14% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
INTU's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 45.55% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as INTU, try PAYC, VRSN, APPF, MANT, and ADSK.
Piper Sandler initiated Intuit ([[INTU]] -2.5%) with an Overweight, PT $351; the stock has generated 28.5% returns in the past 6 months.Wall Street Analyst Rating is Bullish.Analyst Arvind Ramnani believes that Intuit's differentiated product offering, large customer base, proprietary tech stack, and innovation will enable the company to continue delivering...