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 40th 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. As for the metrics that stood out in our discounted cash flow analysis of New Relic Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is -2.25; that's higher than merely 17.36% of US stocks in the Technology sector that have positive free cash flow.
New Relic Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
EBIX, TXN, DBX, HPQ, and LGL 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.