Tech Data Corporation distributes and markets broadline products, such as notebooks, tablets, desktop systems, printers, supplies, and components, and data center products, including servers, server accessories, networking products, storage hardware, and networking support services. The company was founded in 1974 and is based in Clearwater, Florida.
TECD 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 Tech Data Corp. To summarize, we found that Tech Data Corp ranked in the 89th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for TECD, they are:
Its compound free cash flow growth rate, as measured over the past 5.56 years, is 0.71% -- higher than 88.26% of stocks in our DCF forecasting set.
As a business, TECD is generating more cash flow than 77.82% of positive cash flow stocks in the Technology.
Tech Data Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 24.88% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
LINX, MX, DELL, DXC, and BIDU can be thought of as valuation peers to TECD, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
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CLEARWATER, Fla.--(BUSINESS WIRE)--Tech Data (NASDAQ: TECD) (the “Company”) today announced its financial results for the first quarter ended April 30, 2020. First quarter ended April 30, ($ in millions,except per share amounts) 2020 2019 Y/Y Change Net Sales $8,175.2 $8,406.4 -3% Gross profit $531.7 $509.4 4% Gross margin 6.50% 6.06% 44 bps SG&A expenses (GAAP) $427.9 $405.5 6% % of net sales 5.23% 4.82% 41 bps SG&A expenses (Non-GAAP) $402.8 $384.6 5% % of net sal
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