The fair value of requested stock should be $99.54
* Note: Prices are in Million (M) USD.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $420 M
Debt : $576 M
EBITDA : $302 M
Net Debt (Debt - Cash): $156 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Software - Infrastructure
Based on sector, 5 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 9.54
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $311 M
Average Revenue: $2,039 M
Free Cash Flow to Revenue : 15 %
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $1,750 M
Revenue 4 Years Ago (2020-12-31): $1,836 M
Revenue Growth: -1%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $98 M
Share Count 5 Years Ago (2020-12-31): $112 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $2.27
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 24%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $22
52-Week Low: $18
Threshold Price (15% Above 52-Week Low): $21
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $2,075 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 26 points to above Teradata Corp (TDC) stock.
Value-Trades has assined P/E value 25. Since current year earning per share is $2.265.
The fair value of Teradata Corp (TDC) stock should be (25 x $2.265) = $56.63
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