Key Insights
- Qualys’ estimated fair value is US$300 based on 2 Stage Free Cash Flow to Equity
- Qualys’ US$172 share price signals that it might be 43% undervalued
- The US$167 analyst price target for QLYS is 45% less than our estimate of fair value
Today we’ll do a simple run through of a valuation method used to estimate the attractiveness of Qualys, Inc. (NASDAQ:QLYS) as an investment opportunity by projecting its future cash flows and then discounting them to today’s value. We will use the Discounted Cash Flow (DCF) model on this occasion. There’s really not all that much to it, even though it might appear quite complex.
We generally believe that a company’s value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you still have some burning questions about this type of valuation, take a look at the Simply Wall…
