Korn/Ferry International provides talent management solutions that help clients to design strategies and in the execution of building and attracting their talent worldwide. It operates through three segments: Executive Recruitment, Leadership & Talent Consulting (LTC), and Futurestep. The company was founded in 1969 and is based in Los Angeles, California.
KFY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for KFY, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Korn Ferry ranked in the 64th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 110%. In terms of the factors that were most noteworthy in this DCF analysis for KFY, they are:
Korn Ferry's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 17.01% of tickers in our DCF set.
KFY'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 only 17.01% of tickers in our DCF set.
As a business, Korn Ferry experienced a tax rate of about 19% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than 78.97% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as KFY, try AGCO, IMXI, MIDD, MHH, and EBF.
Korn Ferry (NYSE:KFY) today announced that it has been named as a Leader in Recruitment Process Outsourcing (RPO) in Everest Group’s PEAK Matrix®. This is the third consecutive year that Korn Ferry has been named as a Leader in RPO. Everest Group also recognized Korn Ferry as a "Star Performer" for demonstrating the most improvement over time.
LOS ANGELES--(BUSINESS WIRE)--A new customer satisfaction survey has named Korn Ferry (NYSE:KFY) as the top overall Employee Engagement Service Provider in HRO Today’s “Baker’s Dozen” Customer Satisfaction Ratings. This is the second year in a row that Korn Ferry claimed the top spot. The ratings also found that Korn Ferry takes the lead in all of the specific categories in the report, including breadth, quality and size of deals. The magazine collects feedback annually through an online survey