Match Group, Inc. owns and operates subscription-based online dating websites and applications. The Company offers online dating and matchmaking services. The company was founded in 1993 and is based in Dallas, Texas.
MTCH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Match Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Match Group Inc ranked in the 44th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for MTCH, they are:
The company has produced more trailing twelve month cash flow than 78.24% of its sector Technology.
MTCH'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 45.66% of tickers in our DCF set.
Match Group Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 22.83% of US stocks with positive free cash flow.
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 Match Group Inc? See NVDA, CSCO, KLAC, SLP, and RMBS.
Like some other pandemic trends, online dating apps are enjoying increased traffic as many people shelter at home. The pandemic seems to have enhanced the appeal of online dating by simply removing most alternatives. Revenue for the online dating sector is already pushing $2 billion with an annual growth rate of 9.3% expected for the next five years.