EchoStar Corp. (SATS): Price and Financial Metrics

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SATS Price/Volume Stats

EchoStar Corp. (SATS) Company Bio

EchoStar Corp. engages in the design, development, and distribution of digital set-top boxes and products for direct-to-home satellite service providers. It operates through the following business segments: Hughes, and EchoStar Satellite Services (ESS). The Hughes segment provides broadband satellite technologies and broadband internet services to domestic and international consumer customers and broadband network technologies, managed services, equipment, hardware, satellite services and communication solutions to service providers and enterprise customers. The ESS segment owns and leases in-orbit satellites and licenses to lease capacity on a full time and occasional use. The company was founded by Charlie William Ergen, Candy Ergen, and James DeFranco in 1980 and is headquartered in Englewood, CO.

SATS Price Forecast Based on DCF Valuation

Below please find a table outlining a discounted cash flow forecast for SATS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that EchoStar CORP ranked in the 32th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for SATS, they are:

• 47% of the company's capital comes from equity, which is greater than just 14.29% of stocks in our cash flow based forecasting set.
• The business' balance sheet reveals debt to be 53% of the company's capital (with equity being the remaining amount). Approximately 85.67% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
• The weighted average cost of capital for the company is 12. This value is greater than 89.15% stocks in the Technology sector that generate free cash flow.

For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SATS, try DSGX, FIVN, MCHP, NCR, and SAP.