* Note: Prices are in Million (M) USD.
Description:
Informatica Inc. is dedicated to developing a software platform powered by artificial intelligence. The company is headquartered in Redwood City, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,052 M
Debt : $1,858 M
EBITDA : $309 M
Net Debt (Debt - Cash): $806 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
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: 20.60
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 7 overlapping fiscal years (max 20).Average Free Cash Flow: $197 M
Average Revenue: $1,435 M
Revenue Converted To Free Cash Flow (%): 13.7%
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): $1,640 M
Revenue 4 Years Ago (2020-12-31): $1,323 M
Last 5 Years Average Revenue Growth: 5%
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): $313 M
Share Count 5 Years Ago (2020-12-31): $278 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): $1.26
Trailing 12-Month Earnings Per Share (EPS): $1.16
Average Earnings Per Share (EPS): $1.21
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 6 valid ROE years (max 20).Average ROE: -6.9%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $25
52-Week Low: $16
Threshold Price (15% Above 52-Week Low): $18
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: $7,516 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 11 points to above Informatica Inc (INFA) stock.
Last 3 Years Avg PE 24.94, Fair Value PE 20, Industry Based PE 30, Growth Based PE 4, RCFC Based PE 20.98, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 18.14. Value-Trades has assined P/E value 18.14. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.21.
The fair value of Informatica Inc (INFA) stock should be (18.14 x $1.21) = $21.95.
