* Note: Prices are in Million (M) USD.
Description:
Globant SA is a global technology services company. The company is headquartered in Luxembourg, Luxembourg.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $114 M
Debt : $402 M
EBITDA : $295 M
Net Debt (Debt - Cash): $288 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: Information technology services
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: 10.43
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:
Using last 15 overlapping fiscal years (max 20).Average Free Cash Flow: $49 M
Average Revenue: $747 M
Revenue Converted To Free Cash Flow (%): 6.6%
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): $2,416 M
Revenue 4 Years Ago (2020-12-31): $814 M
Last 5 Years Average Revenue Growth: 39%
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): $45 M
Share Count 5 Years Ago (2020-12-31): $40 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): $6.80
Trailing 12-Month Earnings Per Share (EPS): $6.10
Average Earnings Per Share (EPS): $6.45
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 15 valid ROE years (max 20).Average ROE: 13.7%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $67
52-Week Low: $79
Threshold Price (15% Above 52-Week Low): $91
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $3,515 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 28 points to above Globant SA (GLOB) stock.
Last 9 Years Avg PE 34.78, Fair Value PE 25, Industry Based PE 25, Growth Based PE 39, RCFC Based PE 17.24, ROE Based PE 20.93, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 25.58. Value-Trades has assined P/E value 25.58. Since an average (Current Year EPS + Next Year EPS) earning per share is $6.45.
The fair value of Globant SA (GLOB) stock should be (25.58 x $6.45) = $164.97.
