TechTarget allows technology sales and marketing teams to leverage real-time purchase intent data to more intelligently engage technology buyers and prioritize follow-up based on active projects, technical priorities and business needs. The company was founded in 1999 and is based in Newton, Massachusetts.
TTGT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for TTGT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that TechTarget Inc ranked in the 44th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for TechTarget Inc ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 21.43 -- which is good for besting 81.24% of its peer stocks (US stocks in the Technology sector with positive cash flow).
TTGT's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 47.17% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as TTGT, try SLP, ADI, DIOD, YY, and CSCO.
Joining me here today remotely are Greg Strakosch, our executive chairman; Mike Cotoia, our chief executive officer; and Dan Noreck, our CFO. Before turning the call over to Greg, I'd like to remind everyone on the call of our earnings release process.