New Relic Inc. provides software analytics products worldwide. The companys cloud-based platform and suite of products enables organizations to collect, store, and analyze massive amounts of software data in real time. The company was founded in 2007 and is based in San Francisco, California.
NEWR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for New Relic Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that New Relic Inc ranked in the 82th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 612.83%. The most interesting components of our discounted cash flow analysis for New Relic Inc ended up being:
The business' balance sheet suggests that 11% of the company's capital is sourced from debt; this is greater than merely 23.73% of the free cash flow producing stocks we're observing.
New Relic Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -2.74. This coverage rate is greater than that of only 14.62% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, New Relic Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Technology), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AVGO, TWTR, DELL, PLAB, and TECD can be thought of as valuation peers to NEWR, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
The latest 13F reporting period has come and gone, and 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 filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. Now, we are […]
New Relic, Inc. (NYSE: NEWR), the industry’s largest and most comprehensive cloud-based observability platform built to help customers create more perfect software, announced today that it will report its financial results for the first quarter ended June 30, 2020, after market close on Tuesday, August 4, 2020. In conjunction with its earnings press release, New Relic will post an investor letter to the investor relations page of its company website at http://ir.newrelic.com.
The shares of New Relic (NEWR) have been trading sideways for quite some time on slowing growth and execution problems. We think that these problems are behind us with the introduction of the New Relic One platform, which offers significant benefits of an all-encompassing view. We think that the company...
Shareholders Unite on Seeking Alpha | July 8, 2020
LONDON--(BUSINESS WIRE)-- #AIOps--New Relic, Inc. (NYSE: NEWR), the industry’s largest and most comprehensive cloud-based observability platform built to help customers create more perfect software, today announced that Steve Hurn has joined New Relic as executive vice president, and general manager of Europe, Middle East and Africa (EMEA). Reporting directly to president and chief operating officer Michael Christenson, Hurn is responsible for driving the success of New Relic's customers across the regi