Below please find a table outlining a discounted cash flow forecast for OTEL, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Otelco Inc ranked in the 31th 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 Otelco Inc ended up being:
The company's compound free cash flow growth rate over the past 5.64 years comes in at -0.16%; that's greater than only 9.98% of US stocks we're applying DCF forecasting to.
36% of the company's capital comes from equity, which is greater than only 13.27% of stocks in our cash flow based forecasting set.
The weighted average cost of capital for the company is 7. This value is greater than merely 8.19% stocks in the Communication Services sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Communication Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as OTEL, try USM, IDCC, TDS, CHA, and ORAN.
NEW ORLEANS, Aug. 6, 2020 /PRNewswire/ -- Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC ("KSF") are investigating the proposed sale of Otelco Inc. (NasdaqGS: OTEL) to affiliates formed by Oak Hill Capital. Under the terms of the…
NEW YORK, NY / ACCESSWIRE / July 31, 2020 / Juan Monteverde, founder and managing partner at Monteverde & Associates PC, a national securities firm headquartered at the Empire State Building in New York City, is investigating: * Advanced Disposal Services, Inc.
BALA CYNWYD, PA / ACCESSWIRE / July 30, 2020 / Brodsky & Smith, LLC reminds investors of investigations it is conducting regarding the following companies for possible breaches of fiduciary duty and other violations of federal and state law with respect to proposed acquisition transactions.
NEW YORK , July 27, 2020 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the board of directors of Otelco, Inc. ("OTEL" or the "Company") (NASDAQ: Full story available on Benzinga.com