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:
Below please find a table outlining a discounted cash flow forecast for TRUP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Trupanion Inc ranked in the 17th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for TRUP, they are:
As a business, TRUP is generating more cash flow than just 5.89% of positive cash flow stocks in the Financial Services.
The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately merely 6.87% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Trupanion Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.06. This coverage rate is greater than that of merely 24.46% 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
BEN, WETF, NSEC, BLK, and GSHD can be thought of as valuation peers to TRUP, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
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