Slack stock software#

If the symbol has pre-market or post-market trades, that information will also be reflected along with the last (closing) price from the symbol's exchange. Volume always reflects consolidated markets. During market hours, the real-time Cboe BZX price displays and new trade updates are updated on the page (as indicated by a 'flash'). Real-time prices are provided by Cboe BZX Exchange on individual U.S. This is true especially if you are the kind of investor who assumes that cash flow and profits are important in the long run.The Quote Overview page gives you a snapshot view for a specific symbol. Slack stock has a very high valuation, very stretched. And I haven’t even discounted them back to the present for the time value of money.

In addition, FCF profits will be better than 35% of sales at that time. In other words, the market assumes that revenue will grow by at least one third for over the next three years annually. But that is very close to where the stock is trading at right now with a $17.4 billion market cap. At a normal 4% FCF yield, Slack’s market cap would be 17.8 billion. That puts its projected FCF at $712 million.

Slack stock software#

Next, let’s assume Slack’s free cash margin reaches a normal 35% by that time for most software companies. This puts revenue at t $2.034 billion by January 2024, or 3.4 years from now. That means they will rise 77% above $1.15 billion projected for January 2022. Let’s project out two years past January 2022 and assume that revenues increase on average 33% each year. Let’s see if we can do a simplified valuation using reasonable assumptions. It had the effect of pushing other cloud-based SaaS stocks, including Slack, higher as well. For example, (NYSE: CRM), which is joining the Dow Industrials index, just reported a blowout quarter. Nevertheless, I guess everything in the market is relative these days. In other words, what passes for a bargain with SaaS stocks are beyond expensive for most other stocks.

This is interesting since these are multiples that normally are used to measure much lower baseline numbers like net income, or even cash flow. 2022 sales reach $1.15 billion, the valuation is still 16 times. Given its fiscal year January 2021 expected revenues of $873 million, that puts it at around 21 times revenues. Slack has a market capitalization of $18.3 billion. He points out that not only will this greatly increase Slack’s revenues going forward, but also help them in their fierce competition with Microsoft (NASDAQ: MSFT) and their Teams product.Īnother analyst, The Abstract Investor, writes that Slack stock has one of the more reasonable valuations among the SaaS stocks (Software as a Subscription). He points out that Slack will allow employees access to transcripts of calls using Amazon’s Chime video-calling service. One analyst, Vincenzo Furcillo, is impressed with Slack’s recent collaboration deal with Amazon (NASDAQ: AMZN) and their 875,000 employees. Several analysts on Seeking Alpha are impressed with the company’s ability to keep up sales growth during the pandemic. In return, it will make Slack stock more valuable, especially with the Wal Street crowd. This should continue to grow exponentially as sales rise, based on operating leverage. Cash flow from operations was $8.7 million and capex was $5 million, leaving free cash flow of $3.7 million. Slack produced its first free cash flow in the most recent fiscal quarter ending April. This is cash flow from operations minus capital expenditures (capex). Many of these fast-growing companies report losses due to very high stock-based compensation (SBC) expenses, like options and restricted stock units. However, so far, net income has been elusive for the company. Moreover, next year, analysts expect it to rise another 31.7% to $1.15 billion.ģ0 Dividend Stocks to Buy Now for 20 Years of Income Growth Slack’s revenue is expected to grow over 38.5% this is fiscal year ending Jan.