SurveyMonkey Inc. develops online survey software to Fortune 100 companies, other businesses, academic institutions, organizations, and individuals worldwide. The company was founded in 1999 and is based in San Mateo, California.
SVMK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for SVMK Inc. To summarize, we found that SVMK Inc ranked in the 32th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 47%. As for the metrics that stood out in our discounted cash flow analysis of SVMK Inc, consider:
The business' balance sheet reveals debt to be 8% of the company's capital (with equity being the remaining amount). Approximately merely 20.41% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
SVMK Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -5.1. This coverage rate is greater than that of merely 12.11% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 9. This value is greater than 77.07% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
EXFO, ALOT, CDNS, DBX, and ESE can be thought of as valuation peers to SVMK, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
How do you pick the next stock to invest in? One way would be to spend days of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of […]