Verint Systems provides actionable intelligence solutions and value-added services worldwide. The company operates through three segments: Enterprise Intelligence Solutions, Communications and Cyber Intelligence Solutions, and Video and Situation Intelligence Solutions. The company was founded in 1994 and is based in Melville, New York.
VRNT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Verint Systems Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Verint Systems Inc ranked in the 35th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 40.17%. In terms of the factors that were most noteworthy in this DCF analysis for VRNT, they are:
78% of the company's capital comes from equity, which is greater than 57.94% of stocks in our cash flow based forecasting set.
Verint Systems Inc's effective tax rate, as measured by taxes paid relative to net income, is at 17 -- greater than 66.4% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Technology), Verint Systems Inc has a reliance on debt greater than 71.83% of them.
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 VRNT, try SVMK, ADSK, ALRM, DBD, and EVTC.
Verint® Systems Inc. (NASDAQ: VRNT) will conduct a conference call on Tuesday, June 9, 2020 at 4:30 p.m. ET to review its first quarter financial results (for the quarter ended April 30, 2020). An earnings press release will be issued after the market closes on June 9th.