The Discounted Cash Flow (DCF) valuation of Mimecast Ltd (MIME) is 9.00 USD. With the latest stock price at 79.92 USD, the upside of Mimecast Ltd based on DCF is -88.7%.
Based on the latest price of 79.92 USD and our DCF valuation, Mimecast Ltd (MIME) is a sell. Selling MIME stocks now will result in a potential gain of 88.7%.
Range | Selected | |
WACC / Discount Rate | 6.9% - 9.0% | 7.9% |
Long-term Growth Rate | 3.0% - 5.0% | 4.0% |
Fair Price | 7.64 - 13.33 | 9.00 |
Upside | -90.4% - -83.3% | -88.7% |
(USD in millions) | Projections | |||||
03-2021 | 03-2022 | 03-2023 | 03-2024 | 03-2025 | 03-2026 | |
Revenue | 501 | 589 | 682 | 826 | 975 | 1,133 |
% Growth | 17% | 17% | 16% | 21% | 18% | 16% |
Cost of goods sold | (122) | (136) | (149) | (172) | (193) | (213) |
% of Revenue | 24% | 23% | 22% | 21% | 20% | 19% |
Selling, G&A expenses | (247) | (290) | (336) | (407) | (480) | (558) |
% of Revenue | 49% | 49% | 49% | 49% | 49% | 49% |
Research & Development | (98) | (114) | (133) | (161) | (189) | (220) |
% of Revenue | 19% | 19% | 19% | 19% | 19% | 19% |
Net interest & other expenses | (4) | (4) | (5) | (6) | (7) | (9) |
% of Revenue | 1% | 1% | 1% | 1% | 1% | 1% |
Tax expense | (2) | (12) | (16) | (22) | (28) | (36) |
Tax rate | 5% | 27% | 27% | 27% | 27% | 27% |
Net profit | 30 | 32 | 43 | 59 | 77 | 97 |
% Margin | 6% | 5% | 6% | 7% | 8% | 9% |