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 82th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 447% on a DCF basis. The most interesting components of our discounted cash flow analysis for SVMK Inc ended up being:
The company's compound free cash flow growth rate over the past 0.7 years comes in at 1.22%; that's greater than 93.71% of US stocks we're applying DCF forecasting to.
SVMK Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -3.84. This coverage rate is greater than that of just 9.53% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 10. This value is greater than 84.52% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
EGAN, CARB, BOX, NCR, and CRTO 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.