Omnicell provides automation and business analytics software for patient-centric medication and supply management across the entire healthcare continuum, from the acute care hospital setting to post-acute skilled nursing and long-term care facilities to the home. The company was founded in 1992 and is based in Mountain View, California.
OMCL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for OMNICELL Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that OMNICELL Inc ranked in the 18th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for OMNICELL Inc ended up being:
The business' balance sheet suggests that 9% of the company's capital is sourced from debt; this is greater than merely 24.53% of the free cash flow producing stocks we're observing.
OMNICELL Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 9. This value is greater than just 23.65% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ESE, GPRO, PAYC, SITM, and TESS can be thought of as valuation peers to OMCL, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.