Medpace, Inc. operates as a contract research organization that provides research based drug and medical device development services. The company was founded in 1992 and is based in Cincinnati, Ohio.
MEDP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MEDP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Medpace Holdings Inc ranked in the 57th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 99.67%. The most interesting components of our discounted cash flow analysis for Medpace Holdings Inc ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 80.61; that's higher than 92.35% of US stocks in the Healthcare sector that have positive free cash flow.
The business' balance sheet suggests that 2% of the company's capital is sourced from debt; this is greater than only 6.49% of the free cash flow producing stocks we're observing.
MEDP'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 61.62% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Medpace Holdings Inc? See IART, EBS, IONS, UNH, and PDEX.