Seagate Technology PLC - Ordinary Shares (Ireland) (STX) Company Bio
Seagate Technology is a provider of electronic data storage products. The Company's principal products are hard disk drives, commonly referred to as disk drives, hard drives or HDDs. The company was founded in 1979 and is based in Dublin, Ireland.
STX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for STX, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Seagate Technology plc ranked in the 20th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for STX, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 80. Notably, its equity weight is greater than merely 23.11% of US equities in the Technology sector yielding a positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 5.5 years, is -0.14% -- higher than merely 10.86% of stocks in our DCF forecasting set.
Seagate Technology plc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 17.95% of tickers in our DCF set.
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 STX, try IIIV, QADB, SLAB, AUDC, and STM.
- $0.15) also landed below the consensus estimate of $1.31. Coming back to 2Q performance, Seagate's revenues of $2.62 billion declined 2.7% year-over-year but surpassed analysts’ expectations of $2.55 billion. Its adjusted EPS dropped 4.4% to $1.29 but easily exceeded the Street's estimate of $1.10.