Sabre Corporation provides technology solutions to the travel and tourism industry worldwide. It operates in two segments: Travel Network, and Airline and Hospitality Solutions. The company was founded in 2006 and is based in Southlake, Texas.
SABR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Sabre Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Sabre Corp ranked in the 82th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 717% on a DCF basis. The most interesting components of our discounted cash flow analysis for Sabre Corp ended up being:
As a business, SABR is generating more cash flow than 71.71% of positive cash flow stocks in the Technology.
33% of the company's capital comes from equity, which is greater than merely 20.03% of stocks in our cash flow based forecasting set.
The business' balance sheet reveals debt to be 67% of the company's capital (with equity being the remaining amount). Approximately 79.93% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CRTO, AMD, LTRPA, PFPT, and MFGP can be thought of as valuation peers to SABR, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.