* Note: Prices are in Million (M) USD.
Description:
GoDaddy Inc. is dedicated to the design and development of cloud-based technology products in the United States and internationally. The company is headquartered in Scottsdale, Arizona.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1 M
Debt : $0 M
EBITDA : $1,223 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Internet content & information
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: 24.55
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 14 overlapping fiscal years (max 20).Average Free Cash Flow: $479 M
Average Revenue: $2,548 M
Revenue Converted To Free Cash Flow (%): 18.8%
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): $4,573 M
Revenue 4 Years Ago (2020-12-31): $3,317 M
Last 5 Years Average Revenue Growth: 8%
Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $145 M
Share Count 5 Years Ago (2020-12-31): $169 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $6.31
Trailing 12-Month Earnings Per Share (EPS): $5.76
Average Earnings Per Share (EPS): $6.04
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:
Using last 11 valid ROE years (max 20).Average ROE: 235.4%
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: $148
52-Week Low: $133
Threshold Price (15% Above 52-Week Low): $152
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $19,885 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 32 points to above Godaddy Inc (GDDY) stock.
Last 3 Years Avg PE 25.23, Fair Value PE 25, Industry Based PE 30, Growth Based PE 7, RCFC Based PE 27.03, ROE Based PE 50, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 25.91. Value-Trades has assined P/E value 25.91. Since an average (Current Year EPS + Next Year EPS) earning per share is $6.04.
The fair value of Godaddy Inc (GDDY) stock should be (25.91 x $6.04) = $156.47.
