Proofpoint Inc. provides cloud-based solutions for comprehensive threat protection, incident response, secure communications, social media security, compliance, archiving and governance. The company was founded in 2002 and is based in Sunnyvale, California.
PFPT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for PFPT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Proofpoint Inc ranked in the 84th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 751.67%. The most interesting components of our discounted cash flow analysis for Proofpoint Inc ended up being:
The business' balance sheet suggests that 12% of the company's capital is sourced from debt; this is greater than merely 23.57% of the free cash flow producing stocks we're observing.
Proofpoint Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -5.32. This coverage rate is greater than that of only 11.01% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Proofpoint 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
CTG, TWTR, DXC, AVGO, and SAIL can be thought of as valuation peers to PFPT, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Proofpoint, Inc., (PFPT), a leading cybersecurity and compliance company, today announced a new, cloud-based ObserveIT Insider Threat Management (ITM) platform to provide insider risk detection, accelerated incident response, and broader unified visibility across user activity, data interaction, and threat context. Generally available today, the innovations featured in this new ITM cloud-based platform introduce a new people-centric user risk analysis paradigm that reduces risk, delivers greater ROI, and offers a truly scalable approach for modern cybersecurity teams. “More than 30 percent of all data breaches are related to insiders – whether they be acting negligently, maliciously, or compromised by an outside actor,” said Mike McKee, executive vice president and general manager of ...
Okta, Inc. (NASDAQ:OKTA), CrowdStrike, Inc. (NASDAQ: CRWD), Netskope, and Proofpoint, Inc. (NASDAQ: PFPT) today announced the companies are coordinating to help organizations implement an integrated, zero trust security strategy required to protect today’s dynamic and remote working environments.
Proofpoint (NASDAQ:PFPT) has missed the recent cyber bull run, weighed down largely by short-term uncertainties related to COVID-19. Given the company’s diverse product portfolio, long-term growth prospects into new and within existing customers, and tailwinds related to work-from-home, the market seems to be over-penalizing management’s near-term guidance. Further, the significant...
Aravind Bharadwaj on Seeking Alpha | June 24, 2020