Leaf Group Ltd. operates as a diversified media and technology company worldwide. The company connects individual content creators and artists to passionate audiences across various lifestyle categories. It offers content and media services, which include an online content creation studio that publishes content to its owned and operated online properties, as well as to online properties operated by its customers. The company was founded in 2006 and is based in Santa Monica, California.
LEAF Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Leaf Group Ltd with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Leaf Group Ltd ranked in the 14th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 83.83%. The most interesting components of our discounted cash flow analysis for Leaf Group Ltd ended up being:
The compound growth rate in the free cash flow of Leaf Group Ltd over the past 5.38 years is -0.17%; that's higher than only 7.54% of free cash flow generating stocks in the Technology sector.
Leaf Group Ltd's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -88.57. This coverage rate is greater than that of merely 2.09% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
INSE, COHU, PTC, QADB, and ANSS can be thought of as valuation peers to LEAF, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Leaf ([[LEAF]] +1.8%) subsidiary Society6 announced its collaboration with Parks Project for a special “Art for Parks” collection inspired by and in support of U.S. National Parks.Society6's 5 artists have created exclusive designs available for sale through both Society6 and Parks Project, with a portion of proceeds benefiting the National Parks Conservation Association....
Leaf ([[LEAF]] -0.3%) subsidiary Society6 announced Gross Transaction Value of $17.4M (+116% Y/Y) for August 2020."Society6 is continuing to see strong growth, especially in the Home Decor category, even with this non-traditional back-to-school season,” said Julie Matrat, General Manager of Society6....
Shareholders in Leaf Group have criticized the digital media company for issuing an $800,000, off-cycle stock bonus to chief executive Sean Moriarty. They also said they were “shocked” that Moriarty had been granted a $200,000 cash bonus in June, weeks after the company received a $7.1 million Paycheck Protection Program loan. Q2 2020 hedge fund letters, […] The post Lighthaven Capital’s Short Thesis At Energous Corp appeared first on ValueWalk .