Atlassian Corporation Plc - Class A Ordinary Shares (TEAM) Company Bio
Atlassian Inc. focuses on designing, developing, and producing prepackaged computer software. The company makes software for developers for such tasks as tracking and testing code and communicating among teams through its HipChat tool. The company was founded in 2005 and is based in San Francisco, California.
TEAM 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 Atlassian Corp Plc. To summarize, we found that Atlassian Corp Plc ranked in the 35th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 51.83%. As for the metrics that stood out in our discounted cash flow analysis of Atlassian Corp Plc, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 98. Notably, its equity weight is greater than 80.96% of US equities in the Technology sector yielding a positive free cash flow.
The business' balance sheet reveals debt to be 2% of the company's capital (with equity being the remaining amount). Approximately just 10% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Atlassian Corp Plc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -7.93. This coverage rate is greater than that of just 9.59% 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
ACIW, ADI, ALRM, NOVT, and UI can be thought of as valuation peers to TEAM, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Atlassian (TEAM) climbs 1.3% after Motley Fool recommended the shares earlier.Other Fool picks include Zillow (ZG), Salesforce.com (CRM) NextEra Energy (NEE) and Axon Enterprise (AAXN)Recall Jan. 12, Cybersecurity takes the forefront as Mizuho hunts upside from enterprise software's Q4....
We’ve done so much great content with Atlassian over the years, with CEO Michael-Cannon Brooks to Trello Founder and CEO Michael Pryor to ex-President Jay Simons, and the learnings are… Continue Reading The post 5 Interesting Learnings from Atlassian at $2B in ARR appeared first on SaaStr .