SailPoint Technologies Holdings, Inc. (SAIL) Company Bio
SailPoint Technologies, Inc. provides on-premises or cloud based identity and access management (IAM) solutions that allow organizations to deliver and manage user access from any device to data and applications residing in the datacenter, on mobile devices, and in the cloud. It offers IdentityIQ, a governance-based IAM software solution that delivers a unified approach to compliance, password management, and provisioning activities for applications running on-premises or from the cloud; SecurityIQ, which allows enterprises to discover and govern access to sensitive data for enabling them to address the security threat to unstructured data stored in files; and IdentityNow, a cloud-based IAM-as-a-Service that delivers single sign-on, password management, provisioning, and access certification services for cloud, mobile, and on-premises applications. The company serves banks, healthcare and managed care providers, property and casualty insurance providers, and oil and gas suppliers; and pharmaceutical, credit card, package delivery, and food services companies globally. It sells products through system integrators and resellers. The company was founded in 2004 and is based in Austin, Texas.
SAIL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Sailpoint Technologies Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Sailpoint Technologies Holdings Inc ranked in the 84th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 767% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for SAIL, they are:
The compound growth rate in the free cash flow of Sailpoint Technologies Holdings Inc over the past 2.5 years is 1.36%; that's better than 92.17% of cash flow producing equities in the Technology sector, where it is classified.
Sailpoint Technologies Holdings Inc's effective tax rate, as measured by taxes paid relative to net income, is at 45 -- greater than 93.75% of US stocks with positive free cash flow.
Sailpoint Technologies Holdings Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.09. This coverage rate is greater than that of just 18.85% 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
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SAIL, try ETSY, PFPT, CLS, DXC, and MEET.
SailPoint (SAIL), the identity management software company based in Texas, has been a "sleeper" stock all year. While fellow security/identity related software names like Okta (OKTA) have blasted toward all-time highs on the back of strong billings and accelerated demand from remote workers, SailPoint has lagged behind the majority of...