* Note: Prices are in Million (M) USD.
Description:
Rapid7, Inc. provides cyber security solutions. The company is headquartered in Boston, Massachusetts.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $335 M
Debt : $1,018 M
EBITDA : $71 M
Net Debt (Debt - Cash): $683 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Information Technology
Industry: Software - Infrastructure
Based on industry, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 19.39
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $46 M
Average Revenue: $344 M
Revenue Converted To Free Cash FLow(%): 13%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 123.02%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $844 M
Revenue 4 Years Ago (2020-12-31): $411 M
Last 5 Years Average Revenue Growth: 21%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $63 M
Share Count 5 Years Ago (2020-12-31): $51 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.73
Trailing 12-Month Earnings Per Share (EPS): $0.38
Average Earnings Per Share (EPS): $1.05
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: -71%
Since Average ROE is negative, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $20
52-Week Low: $22
Threshold Price (15% Above 52-Week Low): $25
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,459 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 20 points to above Rapid7 Inc (RPD) stock.
Last 5 Years Avg PE (Limited to last 5 years of EPS data) 40, Fair Value PE 25, Industry Based PE is 30 and Growth based PE is 15. Based on these all values average assigned is 27.50.
Value-Trades has assined P/E value 27.50. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.05.
The fair value of Rapid7 Inc (RPD) stock should be (27.50 x $1.05) = $28.88
