SecureWorks Corporation provides information security services to help organizations worldwide to protect their IT assets, comply with regulations, and reduce security costs. The company was founded in 1998 and is based in Atlanta, Georgia.
SCWX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for SecureWorks Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that SecureWorks Corp ranked in the 96th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 8260.83%. In terms of the factors that were most noteworthy in this DCF analysis for SCWX, they are:
The compound growth rate in the free cash flow of SecureWorks Corp over the past 1.75 years is 1.77%; that's higher than 93.94% of free cash flow generating stocks in the Technology sector.
The business' balance sheet suggests that 3% of the company's capital is sourced from debt; this is greater than merely 9.07% of the free cash flow producing stocks we're observing.
SCWX's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 52.3% of tickers in our DCF set.
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 SecureWorks Corp? See TDOC, GLGI, WIT, LOV, and IMOS.