NetScout Systems, Inc. provides real-time operational intelligence and performance analytics for digital business services against disruptions in availability, performance, and security in the United States, Europe, Asia, and internationally.
The last earnings update was 77 days ago.
Discounted Cash Flow Calculation for DB:NSZ using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
DB:NSZ DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
NetScout Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).
NetScout Systems's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
NetScout Systems's earnings available for a low price, and how does
this compare to other companies in the same industry?
NetScout Systems's earnings are expected to grow significantly at over 20% yearly.
NetScout Systems's revenue is expected to grow by 2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
NetScout Systems's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
NetScout Systems's finances.
The net worth of a company is the difference between its assets and liabilities.
NetScout Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
NetScout Systems's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
NetScout Systems's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 1.3x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Anil K. Singhal co-founded NetScout Systems Inc. in 1984 and has been its Chief Executive Officer and Director since June 1984. Mr. Singhal has been Chairman of the Board and President at NetScout Systems, Inc., January 2007. He provides strategic leadership and vision as well as setting operational priorities for NetScout's management team. Mr. Singhal’s vision of “traffic-based instrumentation” has guided NetScout’s product direction and focus for the past three decades, helping to shape the evolution for the industry in the process. He is credited with numerous innovations in the field of network traffic monitoring and analysis that have helped NetScout gain numerous industry accolades. During the past decade, Mr. Singhal has also been an instrumental part of a number of strategic acquisitions that have fortified and enhanced NetScout’s technology, customer base and go-to-market capabilities He served as the Treasurer of NetScout Systems Inc. since January 2001. Mr. Singhal has earned notable recognition for his entrepreneurial success, including the TiE (The Indus Entrepreneur) Boston Lifetime Achievement in 2013, Enterprise Bank’s 2013 George L. Duncan Award of Excellence and Ernst & Young’s New England Entrepreneur of the Year in 1997. He founded NextPoint Networks, Inc. (acquired by NetScout Systems Inc.) and served as its Chief Executive Officer. He served as the President of Netscout Systems Inc. until July 1993. He served as Chief Executive Officer and Treasurer of Netscout Systems Inc. from July 1993 to December 2000. He served as the Senior Architect and Project Manager of Wang Laboratories from 1979 to June 1984. Mr. Singhal served as the Chairman of Netscout Systems Inc. from July 1993 to December 2000. He served as the Chairman of the Board of NextPoint Networks, Inc. He has been a Director of NetScout Systems since January 2001. He served as a Director of Netscout Systems Inc. and NextPoint Networks, Inc. He holds BSEE from BITS, Pilani and MS in Computer Science from University of Illinois, Urbana-Champaign.
Anil's compensation has increased whilst company is loss making.
Anil's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the NetScout Systems management team is over 5 years, this suggests they are a seasoned and experienced team.
Vice Chairman & COO
Executive Vice President of Worldwide Sales Operations
CTO, Senior VP & Service Provider
Chief Information Officer & Senior VP
Vice President of Investor Relations
VP, General Counsel & Secretary
Senior Vice President of Corporate Development
Chief Marketing Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the NetScout Systems board of directors is less than 3 years, this suggests a new board.
NetScout Systems, Inc. provides real-time operational intelligence and performance analytics for digital business services against disruptions in availability, performance, and security in the United States, Europe, Asia, and internationally. The company offers nGeniusONE management software that enables customers to predict, preempt, and resolve network and service delivery problems, as well as facilitate the optimization and capacity planning of their network infrastructures; and specialized platforms and analytic modules that enable its customers to analyze and troubleshoot traffic in radio access and Wi-Fi networks. It also provides Intelligent Data Sources under the InfiniStream brand name that provide real-time collection and analysis of data from the network; packet flow systems that deliver targeted network traffic access to an increasing number of monitoring and security systems; and a suite of test access points that enable non-disruptive access to network traffic with multiple link type and speed options. In addition, the company offers portable network analysis and troubleshooting tools, which help customers identify key issues that impact network and application performance. Further, it provides security solutions that enable service providers and enterprises to protect their networks against distributed denial of service attacks; and threat detection solutions that enable enterprises to identify and investigate advanced threat campaigns that present tangible risks to the integrity of their networks. The company serves enterprise customers in industries, such as financial services, technology, manufacturing, healthcare, utilities, education, transportation, and retail; mobile operators, wireline operators, cable operators, and cloud providers; and governmental agencies through a direct sales force, and indirect reseller and distribution channels. NetScout Systems, Inc. was founded in 1984 and is headquartered in Westford, Massachusetts.
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