Virtu Financial provides market making and liquidity services to the financial markets worldwide. The company was founded in 2008 and is based in New York, New York.
VIRT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Virtu Financial Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Virtu Financial Inc ranked in the 87th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1412.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Virtu Financial Inc ended up being:
30% of the company's capital comes from equity, which is greater than only 13.17% of stocks in our cash flow based forecasting set.
Virtu Financial Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 2.66% of tickers in our DCF set.
Relative to other stocks in its sector (Financial Services), Virtu Financial Inc has a reliance on debt greater than 86.6% of them.
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 Virtu Financial Inc? See JEF, GAIN, RM, AINC, and MFC.
In my opinion, Virtu Financial, Inc. (VIRT) continues to blow past expectations. Once again, the company proved that it could be a viable hedge against volatile market conditions (i.e., violent pullbacks). But it's also continued to prove that it can consistently be a free cash flow machine through all types...
Edgar Torres H on Seeking Alpha | September 29, 2020
Virtu Financial (VIRT) sinks 7.8% after quarter-to-date estimated results through August reflect lower-than-expected July average daily adjusted net trading income followed by even weaker performance in August.Virtu now estimates July 2020 average daily adjusted net trading income of $6.50M, down from the previously estimated range of $6.70M-$7.00M.Estimates August daily adjusted net trading income...
Mom-and-pop investors spending their stimulus checks on no-fee trading apps like Robinhood weren’t all winners in the June rally they fueled, but one Wall Street firm that executed their trades appears to have made out big. Virtu Financial, a $10 billion Manhattan-based provider of trading services, announced gangbuster trading income on Friday, which Wall Streeters…