The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Wayside Technology Group Inc. To summarize, we found that Wayside Technology Group Inc ranked in the 89th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 2011.5% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for WSTG, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 98. Its equity weight surpasses that of 84.63% of free cash flow generating stocks in the Technology sector.
The business' balance sheet suggests that 2% of the company's capital is sourced from debt; this is greater than merely 8.45% of the free cash flow producing stocks we're observing.
Wayside Technology Group Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -22.44. This coverage rate is greater than that of just 5.15% 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
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WSTG, try TME, WIT, IMBI, ETSY, and SNX.
Wayside Technology (WSTG) is trading down 16.9%, still seeing red from yesterday's Q2 results, which took margin and profitability hits from soft volumes from key vendors.Overall net sales increased 12% Y/Y to $56.6M. Climb Channel Solutions (formerly Lifeboat Distribution) rose 15% to $54.2M.Gross profit was $7.1M, down from the $7.8M in last...