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. More precisely, our analysis suggests the stock is undervalued by approximately 7957.17% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of SecureWorks Corp, consider:
In the past 2.01 years, SecureWorks Corp has a compound free cash flow growth rate of 1.69%; that's better than 92.88% of cash flow producing equities in the Technology sector, where it is classified.
The business' balance sheet suggests that 2% of the company's capital is sourced from debt; this is greater than merely 8.68% 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 49.21% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
OKTA, SEDG, ZMTP, IMOS, and CTG can be thought of as valuation peers to SCWX, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
As one of the largest MSSPs (Managed Security Service Providers) out there, SecureWorks (SCWX) offers investors exposure to growth in the security outsourcing space. But even though FQ2 results were strong at first glance, the guidance miss highlights many of the drawbacks to the long-term outlook. Not only has the...
Opal Investment Research on Seeking Alpha | September 20, 2020
DUBLIN--(BUSINESS WIRE)--The "Security Testing Market by Testing Type (Application Security, Network Security, Device Security, and Social Engineering), Deployment Mode, Organization Size, Vertical (BFSI, Healthcare, IT, and Telecom), and Region - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering. The global security testing market size is projected to grow from USD 6,185 million in 2020 to USD 16,950 million by 2025, at a Compound Annual Growth Rate (CAGR) of