The Discounted Cash Flow (DCF) valuation of Slack Technologies Inc (WORK) is (41.22) USD. With the latest stock price at 45.20 USD, the upside of Slack Technologies Inc based on DCF is -191.2%.

Is Slack a buy or a sell?

Based on the latest price of 45.20 USD and our DCF valuation, Slack Technologies Inc (WORK) is a sell. Selling Slack stocks now will result in a potential gain of 191.2%.

Note: valuation result may not be accurate due to the company's negative earnings.

	Range	Selected
WACC / Discount Rate	7.0% - 9.3%	8.1%
Long-term Growth Rate	3.0% - 5.0%	4.0%
Fair Price	(84.23) - (27.48)	(41.22)
Upside	-286.3% - -160.8%	-191.2%

45.20 USD

Stock Price

(41.22) USD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

Slack DCF Valuation: Revenue & Expenses Forecast

(USD in millions)		Projections

	01-2021	01-2022	01-2023	01-2024	01-2025	01-2026

Revenue	903	1,223	1,710	2,373	3,091	3,841
% Growth	43%	36%	40%	39%	30%	24%

Cost of goods sold	(122)	(157)	(208)	(274)	(340)	(401)
% of Revenue	13%	13%	12%	12%	11%	10%

Selling, G&A expenses	(666)	(903)	(1,262)	(1,751)	(2,281)	(2,835)
% of Revenue	74%	74%	74%	74%	74%	74%

Research & Development	(382)	(518)	(724)	(1,005)	(1,309)	(1,626)
% of Revenue	42%	42%	42%	42%	42%	42%

Net interest & other expenses	(25)	(35)	(48)	(67)	(87)	(109)
% of Revenue	3%	3%	3%	3%	3%	3%

Tax expense	0	1	1	1	1	2
Tax rate	0%	0%	0%	0%	0%	0%

Net profit	(292)	(388)	(532)	(723)	(924)	(1,127)
% Margin	-32%	-32%	-31%	-30%	-30%	-29%