* Note: Prices are in Million (M) USD.
Description:
Sprout Social, Inc. is a leading social media management platform based in Chicago, Illinois, dedicated to enhancing brand engagement across the Americas, EMEA, and Asia Pacific. The company offers advanced analytics and reporting capabilities that empower businesses to cultivate meaningful interactions with their audiences while refining their marketing strategies. With a robust suite of enterprise-focused tools, Sprout Social is well-positioned to capitalize on the growing importance of digital communication, enabling brands to thrive in a fast-evolving market landscape.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $91 M
Debt : $47 M
EBITDA : $0 M
This criteria used industry in which company operates:
Sector: Technology
Industry: Services-prepackaged software
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: 13.36
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:
Error: Invalid income data provided.Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used company's growth potential to calculate its fair value:
Error: Invalid income data provided.Using default values for calculation.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $57 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): $0.90
Trailing 12-Month Earnings Per Share (EPS): $0.78
Average Earnings Per Share (EPS): $0.84
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
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:
Error: Invalid income data provided.Skipping ROE-based PE.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $11.23
52-Week Low: $9.16
Threshold Price (15% Above 52-Week Low): $10.53
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: $653 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 1% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 13 points to above Sprout Social Inc (SPT) stock.
Fair Value PE
20, Industry Based PE
25, Risk-Free Anchored PE (25% MoS)
17.86. Based on these 3 values, average assigned is
20.95. Value-Trades has assined P/E value
20.96. An average (Current Year EPS + Next Year EPS) earning per share is
$0.8408.
Fair value using multiple P/Es (blended): $17.62 (PE 20.95 × EPS $0.84)
So the Final Fair Value is: $17.62
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $0.84
| Source |
P/E Ratio |
Implied Fair Value |
| Value-Trades Assigned | 20.96 | $17.62 |
