Trupanion, Inc. operates as a direct-to-consumer monthly subscription service provider of a medical insurance plan for cats and dogs in the United States, Canada, and Puerto Rico. The company was formerly known as Vetinsurance International, Inc. changed its name to Trupanion, Inc. in 2013. The company was founded in 2000 and is based in Seattle, Washington.
TRUP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Trupanion Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Trupanion Inc ranked in the 15th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 83%. As for the metrics that stood out in our discounted cash flow analysis of Trupanion Inc, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 99. Notably, its equity weight is greater than 96.16% of US equities in the Financial Services sector yielding a positive free cash flow.
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than just 5.37% of the free cash flow producing stocks we're observing.
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 Trupanion Inc? See ARGO, GBDC, KINS, BEN, and BLK.
Investment Thesis Despite the massive TAM (total addressable market) and underpenetrated market, a fresh investment in Trupanion (TRUP) is likely to generate subpar returns as it is richly valued at present. Below I provide a brief introduction to the company and then briefly talk about the opportunity before I dive...
ValueWalk and its partners hosted its latest contrarian virtual conference today, and one of the presenters was Bradley Safalow of PAA Research. He pitched pet insurance company Trupanion Inc (NASDAQ:TRUP) as a short position. Q2 2020 hedge fund letters, conferences and more In fact, he said it’s one of his favorite short ideas and possibly […] The post Short Thesis: Why Trupanion Inc Could Plunge 85 Percent appeared first on ValueWalk .
Trupanion, Inc. (TRUP) Q2 2020 Earnings Conference Call Aug 04, 2020, 04:30 PM ET Company Participants Laura Bainbridge - Head of Corporate Communications Darryl Rawlings - CEO Tricia Plouf - CFO Marty Orloff - Territory Partners Conference Call Participants Shweta Khajuria - RBC Capital Markets Maria Ripps - Canaccord Genuity...
Steel City Capital recently released its Q2 2020 Investor Letter, a copy of which you can download here. During the second quarter of 2020, the fund returned 13.1% net of fees, while the S&P 500 Index was up 20.0%. You should check out Steel City Capital’s top 5 stock picks for investors to buy right […]