ServiceSource International, Inc. (SREV) Company Bio
ServiceSource International, Inc. provides recurring revenue management, maintenance, support, and subscription for technology and technology-enabled healthcare and life sciences companies. The company operates in two segments: Managed Services, and Cloud and Business Intelligence. The company was founded in 2002 and is based in San Francisco, California.
SREV Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SREV, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Servicesource International Inc ranked in the 7th 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. The most interesting components of our discounted cash flow analysis for Servicesource International Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 76. Notably, its equity weight is greater than merely 17.67% of US equities in the Technology sector yielding a positive free cash flow.
Servicesource International Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Servicesource International Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -10.63. This coverage rate is greater than that of only 7.95% 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
Want more companies with a valuation profile/forecast similar to that of Servicesource International Inc? See AVYA, CALX, DT, GRUB, and LPTH.
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