Micro Focus Intl PLC ADS each representing One Ord Sh (MFGP) Company Bio
Micro Focus International plc, an infrastructure software company, develops, sells, and supports software products and solutions to federal, airlines, and healthcare industries in the United Kingdom, the United States, Germany, France, Japan, and internationally. The company operates through Micro Focus and SUSE segments. It provides software products in the areas of collaboration, endpoint management, file and networking services, identity and access management, information archiving, security management, terminal emulation, and software delivery and testing, as well as COBOL development and mainframe, and data center solutions. The company offers enterprise Linux, OpenStack private cloud, software-defined storage, and other IT infrastructure management and optimization solutions; and professional, and training and education services. The company was founded in 1976 and is based in Newbury, the United Kingdom.
MFGP 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 Micro Focus International Plc. To summarize, we found that Micro Focus International Plc ranked in the 83th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 636.17%. As for the metrics that stood out in our discounted cash flow analysis of Micro Focus International Plc, consider:
In the past 0.05 years, Micro Focus International Plc has a compound free cash flow growth rate of 0%; that's higher than only 21.81% of free cash flow generating stocks in the Technology sector.
29% of the company's capital comes from equity, which is greater than only 14.31% of stocks in our cash flow based forecasting set.
Micro Focus International Plc's weighted average cost of capital (WACC) is 5%; for context, that number is higher than merely 0.9% 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 MFGP, try DELL, SMCI, GILT, AVGO, and NEWR.
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]
The U.S. Court of Appeals for the Federal Circuit has declined to relocate a patent case filed against U.S. subsidiaries of British software firm Micro Focus International PLC from plaintiff-friendly East Texas to Delaware.
Micro Focus International (MFGP) was having difficulties prior to COVID-19 hitting, but now bearishness towards this British tech firm has completely pummeled the share price - making it a prospective value opportunity. That Micro Focus International's share price has tanked over the past year is indisputable. Micro Focus International traded...
Cash-Centered Creep on Seeking Alpha | June 16, 2020