Nuance Communications provides voice and language solutions for businesses and consumers worldwide. The company was founded in 1992 and is based in Burlington, Massachusetts.
NUAN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Nuance Communications Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Nuance Communications Inc ranked in the 28th 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 Nuance Communications Inc, consider:
In the past 5.75 years, Nuance Communications Inc has a compound free cash flow growth rate of 0.01%; that's better than just 20.86% of cash flow producing equities in the Technology sector, where it is classified.
Nuance Communications Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
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 NUAN, try IT, QRTEA, SYKE, BHE, and CDNS.