Qualys Inc. provides cloud security and compliance solutions in the United States and internationally. The Company's solutions enable organizations to identify security risks to their information technology infrastructures, help protect their IT systems and applications from cyber attacks. The company was founded in 1999 and is based in Redwood City, California.
QLYS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Qualys Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Qualys Inc ranked in the 57th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 23.83% on a DCF basis. The most interesting components of our discounted cash flow analysis for Qualys Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 8,188.25; that's higher than 99.5% of US stocks in the Technology sector that have positive free cash flow.
The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately only 7.13% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
QLYS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 51.4% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MGIC, EIGI, SWI, INIS, and BELFA can be thought of as valuation peers to QLYS, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Qualys, Inc. (NASDAQ: QLYS), a pioneer and leading provider of cloud-based IT, security and compliance solutions, today announced that the company will report its financial results for the fourth quarter and full year 2020 after the market closes on Wednesday, February 10, 2021.
Qualys (QLYS) remains one of the leaders in the vulnerability management industry and continues to demonstrate success with new product launches. Q3 revenue came in above consensus and continued margin expansion led to another quarterly EPS beat. However, the stock had been in the penalty box since early August and...
The Software Side of Life on Seeking Alpha | January 7, 2021