Perspecta Inc. provides enterprise information technology (IT) services to government customers in the United States federal, state, and local markets. It offers cloud, platform, and IT Outsourcing services; enterprise and cloud applications services in the areas of application modernization and transformation, application development, testing and digital assurance, and application management; and enterprise security solutions, including building security infrastructures into the fabric of U.S. government agencies' digital enterprises. The company also provides services for converged mobility and workplace management, such as mobile enterprise services, virtual desktop and application services, and workplace device services; and a portfolio of analytics services comprising analytics platforms, information governance, artificial intelligence, and advisory services. Perspecta Inc. is based in Chantilly, Virginia.
PRSP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Perspecta Inc. To summarize, we found that Perspecta Inc ranked in the 97th percentile in terms of potential gain offered. Our DCF model suggests the stock is undervalued by 13967.83%; returns of such proportions should be viewed with some skepticism, though. The most interesting components of our discounted cash flow analysis for Perspecta Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 54. Notably, its equity weight is greater than only 7.46% of US equities in the Technology sector yielding a positive free cash flow.
The company's compound free cash flow growth rate over the past 2.4 years comes in at 1.82%; that's greater than 95.35% of US stocks we're applying DCF forecasting to.
Perspecta Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -4.83. This coverage rate is greater than that of just 12.34% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Perspecta Inc? See SEDG, TRT, SNE, QCCO, and WEX.
Perspecta Inc. (NYSE: PRSP), a leading U.S. government services provider, announced today that it has received a follow-on award to continue supporting the Federal Student Aid Information Center (FSAIC) 2020 program for the U.S. Department of Education, Office of Federal Student Aid (FSA). The award extends over three years with a ceiling value of $98.4 million.
The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 823 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of June 30th, when the S&P 500 Index was trading around the […]