* Note: Prices are in Million (M) USD.
Description:
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $105 M
Debt : $253 M
EBITDA : $44 M
Net Debt (Debt - Cash): $148 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Health Care
Industry: Health Information Services
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 18.04
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: $29 M
Average Revenue: $183 M
Revenue Converted To Free Cash Flow (%): 16%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 20.63%
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): $252 M
Revenue 4 Years Ago (2020-12-31): $118 M
Last 5 Years Average Revenue Growth: 23%
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): $117 M
Share Count 5 Years Ago (2020-12-31): $97 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): $0.23
Trailing 12-Month Earnings Per Share (EPS): $0.22
Average Earnings Per Share (EPS): $0.23
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: -23%
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: $4
52-Week Low: $2
Threshold Price (15% Above 52-Week Low): $2
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: $429 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based the market cap, we recommend do not exceed 0.5% exposure of Total Portfolio.
Value-Trade has assigned 15 points to above Definitive Healthcare Corp (DH) stock.
Last 3 Years Avg PE 30.22, Fair Value PE 12, Industry Based PE 20, Growth Based PE 22, RCFC Based PE 15.6. Based on these 5 values, average assigned is 19.96.
Value-Trades has assined P/E value 19.96. Since an average (Current Year EPS + Next Year EPS) earning per share is $0.225.
The fair value of Definitive Healthcare Corp (DH) stock should be (19.96 x $0.225) = $4.49
