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 44th 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. In terms of the factors that were most noteworthy in this DCF analysis for TEAM, they are:
The business' balance sheet reveals debt to be 2% of the company's capital (with equity being the remaining amount). Approximately only 9% 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 -1.99. This coverage rate is greater than that of just 16.68% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Atlassian Corp Plc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Technology), this tax rate is higher than merely 0% of stocks generating free cash flow.
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 Atlassian Corp Plc? See CSCO, EXLS, VMW, IIIV, and TTGT.