Intrinsic value of Veritone, Inc. - VERI

Previous Close

$8.66

  Intrinsic Value

$0.75

stock screener

  Rating & Target

str. sell

-91%

Previous close

$8.66

 
Intrinsic value

$0.75

 
Up/down potential

-91%

 
Rating

str. sell

We calculate the intrinsic value of VERI stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  22
  35
  52
  75
  106
  146
  196
  257
  330
  417
  518
  633
  764
  908
  1,068
  1,243
  1,431
  1,634
  1,851
  2,081
  2,324
  2,580
  2,849
  3,130
  3,424
  3,730
  4,049
  4,381
  4,727
  5,085
Variable operating expenses, $m
  81
  126
  188
  272
  384
  528
  708
  930
  1,197
  1,511
  1,876
  2,294
  2,765
  3,290
  3,868
  4,500
  5,184
  5,918
  6,703
  7,536
  8,416
  9,344
  10,317
  11,336
  12,400
  13,509
  14,665
  15,867
  17,117
  18,417
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  81
  126
  188
  272
  384
  528
  708
  930
  1,197
  1,511
  1,876
  2,294
  2,765
  3,290
  3,868
  4,500
  5,184
  5,918
  6,703
  7,536
  8,416
  9,344
  10,317
  11,336
  12,400
  13,509
  14,665
  15,867
  17,117
  18,417
Operating income, $m
  -59
  -91
  -136
  -197
  -278
  -382
  -513
  -673
  -866
  -1,094
  -1,358
  -1,661
  -2,002
  -2,382
  -2,800
  -3,257
  -3,752
  -4,284
  -4,852
  -5,455
  -6,092
  -6,764
  -7,468
  -8,206
  -8,976
  -9,779
  -10,616
  -11,486
  -12,391
  -13,331
EBITDA, $m
  -58
  -90
  -135
  -196
  -277
  -380
  -510
  -670
  -862
  -1,089
  -1,353
  -1,654
  -1,993
  -2,372
  -2,789
  -3,244
  -3,737
  -4,266
  -4,832
  -5,433
  -6,067
  -6,736
  -7,438
  -8,172
  -8,939
  -9,739
  -10,572
  -11,439
  -12,340
  -13,277
Interest expense (income), $m
  0
  0
  1
  2
  4
  6
  10
  14
  19
  26
  33
  42
  53
  65
  79
  94
  111
  129
  149
  170
  193
  217
  243
  270
  298
  328
  358
  391
  424
  459
  495
Earnings before tax, $m
  -59
  -92
  -138
  -201
  -284
  -392
  -527
  -692
  -892
  -1,127
  -1,401
  -1,714
  -2,067
  -2,460
  -2,894
  -3,368
  -3,881
  -4,433
  -5,022
  -5,648
  -6,310
  -7,007
  -7,738
  -8,504
  -9,304
  -10,138
  -11,006
  -11,910
  -12,850
  -13,827
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -59
  -92
  -138
  -201
  -284
  -392
  -527
  -692
  -892
  -1,127
  -1,401
  -1,714
  -2,067
  -2,460
  -2,894
  -3,368
  -3,881
  -4,433
  -5,022
  -5,648
  -6,310
  -7,007
  -7,738
  -8,504
  -9,304
  -10,138
  -11,006
  -11,910
  -12,850
  -13,827

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  75
  115
  173
  250
  353
  486
  652
  856
  1,101
  1,391
  1,727
  2,112
  2,545
  3,028
  3,561
  4,142
  4,771
  5,447
  6,169
  6,936
  7,747
  8,600
  9,496
  10,434
  11,413
  12,434
  13,498
  14,604
  15,755
  16,951
Adjusted assets (=assets-cash), $m
  75
  115
  173
  250
  353
  486
  652
  856
  1,101
  1,391
  1,727
  2,112
  2,545
  3,028
  3,561
  4,142
  4,771
  5,447
  6,169
  6,936
  7,747
  8,600
  9,496
  10,434
  11,413
  12,434
  13,498
  14,604
  15,755
  16,951
Revenue / Adjusted assets
  0.293
  0.304
  0.301
  0.300
  0.300
  0.300
  0.301
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
  0.300
Average production assets, $m
  2
  3
  4
  6
  9
  13
  17
  22
  28
  36
  45
  54
  66
  78
  92
  107
  123
  141
  159
  179
  200
  222
  245
  269
  294
  321
  348
  377
  406
  437
Working capital, $m
  -20
  -31
  -47
  -68
  -95
  -131
  -176
  -231
  -297
  -376
  -466
  -570
  -687
  -818
  -961
  -1,118
  -1,288
  -1,471
  -1,666
  -1,873
  -2,092
  -2,322
  -2,564
  -2,817
  -3,082
  -3,357
  -3,644
  -3,943
  -4,254
  -4,577
Total debt, $m
  16
  40
  73
  119
  179
  256
  353
  472
  616
  785
  981
  1,206
  1,459
  1,741
  2,052
  2,392
  2,759
  3,154
  3,576
  4,023
  4,497
  4,995
  5,518
  6,066
  6,638
  7,234
  7,855
  8,502
  9,174
  9,872
Total liabilities, $m
  44
  67
  101
  146
  206
  284
  381
  500
  643
  812
  1,009
  1,233
  1,486
  1,768
  2,079
  2,419
  2,786
  3,181
  3,603
  4,051
  4,524
  5,022
  5,546
  6,093
  6,665
  7,262
  7,883
  8,529
  9,201
  9,899
Total equity, $m
  31
  48
  72
  104
  147
  202
  271
  356
  458
  579
  718
  878
  1,059
  1,260
  1,481
  1,723
  1,985
  2,266
  2,566
  2,885
  3,223
  3,578
  3,950
  4,340
  4,748
  5,173
  5,615
  6,075
  6,554
  7,052
Total liabilities and equity, $m
  75
  115
  173
  250
  353
  486
  652
  856
  1,101
  1,391
  1,727
  2,111
  2,545
  3,028
  3,560
  4,142
  4,771
  5,447
  6,169
  6,936
  7,747
  8,600
  9,496
  10,433
  11,413
  12,435
  13,498
  14,604
  15,755
  16,951
Debt-to-equity ratio
  0.530
  0.840
  1.020
  1.140
  1.220
  1.270
  1.300
  1.330
  1.340
  1.360
  1.370
  1.370
  1.380
  1.380
  1.390
  1.390
  1.390
  1.390
  1.390
  1.390
  1.400
  1.400
  1.400
  1.400
  1.400
  1.400
  1.400
  1.400
  1.400
  1.400
Adjusted equity ratio
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -59
  -92
  -138
  -201
  -284
  -392
  -527
  -692
  -892
  -1,127
  -1,401
  -1,714
  -2,067
  -2,460
  -2,894
  -3,368
  -3,881
  -4,433
  -5,022
  -5,648
  -6,310
  -7,007
  -7,738
  -8,504
  -9,304
  -10,138
  -11,006
  -11,910
  -12,850
  -13,827
Depreciation, amort., depletion, $m
  1
  1
  1
  1
  1
  2
  2
  3
  4
  5
  6
  7
  8
  10
  11
  13
  15
  18
  20
  22
  25
  28
  31
  34
  37
  40
  44
  47
  51
  55
Funds from operations, $m
  -58
  -91
  -137
  -200
  -283
  -390
  -524
  -689
  -888
  -1,123
  -1,395
  -1,707
  -2,059
  -2,451
  -2,883
  -3,355
  -3,866
  -4,415
  -5,002
  -5,626
  -6,285
  -6,979
  -7,707
  -8,470
  -9,267
  -10,098
  -10,963
  -11,863
  -12,799
  -13,772
Change in working capital, $m
  -8
  -11
  -15
  -21
  -28
  -36
  -45
  -55
  -66
  -78
  -91
  -104
  -117
  -130
  -144
  -157
  -170
  -183
  -195
  -207
  -219
  -230
  -242
  -253
  -264
  -276
  -287
  -299
  -311
  -323
Cash from operations, $m
  -51
  -80
  -122
  -179
  -255
  -354
  -479
  -634
  -822
  -1,044
  -1,304
  -1,603
  -1,941
  -2,320
  -2,739
  -3,198
  -3,696
  -4,233
  -4,807
  -5,419
  -6,066
  -6,748
  -7,465
  -8,217
  -9,002
  -9,822
  -10,676
  -11,564
  -12,489
  -13,449
Maintenance CAPEX, $m
  0
  0
  0
  -1
  -1
  -1
  -2
  -2
  -3
  -4
  -4
  -6
  -7
  -8
  -10
  -11
  -13
  -15
  -18
  -20
  -22
  -25
  -28
  -31
  -34
  -37
  -40
  -44
  -47
  -51
New CAPEX, $m
  -1
  -1
  -1
  -2
  -3
  -3
  -4
  -5
  -6
  -7
  -9
  -10
  -11
  -12
  -14
  -15
  -16
  -17
  -19
  -20
  -21
  -22
  -23
  -24
  -25
  -26
  -27
  -29
  -30
  -31
Cash from investing activities, $m
  -1
  -1
  -1
  -3
  -4
  -4
  -6
  -7
  -9
  -11
  -13
  -16
  -18
  -20
  -24
  -26
  -29
  -32
  -37
  -40
  -43
  -47
  -51
  -55
  -59
  -63
  -67
  -73
  -77
  -82
Free cash flow, $m
  -52
  -82
  -124
  -182
  -259
  -359
  -485
  -642
  -831
  -1,055
  -1,317
  -1,619
  -1,959
  -2,341
  -2,763
  -3,224
  -3,726
  -4,266
  -4,844
  -5,458
  -6,109
  -6,795
  -7,516
  -8,272
  -9,061
  -9,885
  -10,743
  -11,636
  -12,565
  -13,531
Issuance/(repayment) of debt, $m
  16
  24
  33
  45
  60
  77
  97
  119
  143
  169
  196
  225
  253
  282
  311
  339
  367
  395
  422
  448
  473
  498
  523
  548
  572
  596
  621
  646
  672
  698
Issuance/(repurchase) of shares, $m
  71
  109
  162
  234
  327
  447
  596
  777
  994
  1,248
  1,541
  1,874
  2,247
  2,661
  3,116
  3,610
  4,143
  4,714
  5,323
  5,967
  6,647
  7,362
  8,111
  8,894
  9,711
  10,563
  11,449
  12,371
  13,329
  14,324
Cash from financing (excl. dividends), $m  
  87
  133
  195
  279
  387
  524
  693
  896
  1,137
  1,417
  1,737
  2,099
  2,500
  2,943
  3,427
  3,949
  4,510
  5,109
  5,745
  6,415
  7,120
  7,860
  8,634
  9,442
  10,283
  11,159
  12,070
  13,017
  14,001
  15,022
Total cash flow (excl. dividends), $m
  35
  51
  72
  97
  129
  165
  208
  255
  306
  362
  419
  480
  541
  603
  664
  725
  785
  843
  901
  957
  1,011
  1,065
  1,117
  1,170
  1,222
  1,274
  1,327
  1,380
  1,435
  1,492
Retained Cash Flow (-), $m
  -71
  -109
  -162
  -234
  -327
  -447
  -596
  -777
  -994
  -1,248
  -1,541
  -1,874
  -2,247
  -2,661
  -3,116
  -3,610
  -4,143
  -4,714
  -5,323
  -5,967
  -6,647
  -7,362
  -8,111
  -8,894
  -9,711
  -10,563
  -11,449
  -12,371
  -13,329
  -14,324
Prev. year cash balance distribution, $m
  42
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  6
  -58
  -90
  -136
  -199
  -281
  -388
  -522
  -687
  -886
  -1,121
  -1,394
  -1,706
  -2,059
  -2,452
  -2,885
  -3,358
  -3,871
  -4,422
  -5,010
  -5,636
  -6,297
  -6,993
  -7,724
  -8,489
  -9,289
  -10,122
  -10,990
  -11,893
  -12,833
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  6
  -53
  -79
  -112
  -154
  -204
  -262
  -327
  -395
  -465
  -532
  -595
  -649
  -691
  -720
  -733
  -731
  -713
  -681
  -637
  -583
  -522
  -458
  -393
  -330
  -271
  -217
  -170
  -130
  -97
Current shareholders' claim on cash, %
  42.9
  18.8
  8.4
  3.8
  1.8
  0.8
  0.4
  0.2
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Veritone, Inc. is a developer of artificial intelligence (AI) platform. The Company’s platform unlocks the power of cognitive computing to transform unstructured audio and video data and analyze it in conjunction with structured data in a seamless, automated manner to generate actionable intelligence. Its cloud-based artificial intelligence operating system (aiOS) integrates and orchestrates an open ecosystem of cognitive engines, together with the Company’s suite of applications, to reveal valuable multivariate insights from vast amounts of audio, video and structured data. The Company’s technology enables users to run comprehensive, multivariate queries, correlations and analyses in near real-time using multiple cognitive engines and data sets, integrating and refining the outputs. The Company’s services and target markets include Media Agency Services, software as a service (Saas) Solutions, and Other Vertical Markets and Applications.

FINANCIAL RATIOS  of  Veritone, Inc. (VERI)

Valuation Ratios
P/E Ratio -4.5
Price to Sales 13.4
Price to Book -5.5
Price to Tangible Book
Price to Cash Flow -4.5
Price to Free Cash Flow -4.5
Growth Rates
Sales Growth Rate -35.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 0%
Total Debt to Equity -59.1%
Interest Coverage 0
Management Effectiveness
Return On Assets -108%
Ret/ On Assets - 3 Yr. Avg. -47.3%
Return On Total Capital 675%
Ret/ On T. Cap. - 3 Yr. Avg. 170.2%
Return On Equity 257.1%
Return On Equity - 3 Yr. Avg. 30.9%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 77.8%
Gross Margin - 3 Yr. Avg. 81.2%
EBITDA Margin -300%
EBITDA Margin - 3 Yr. Avg. -127.6%
Operating Margin -266.7%
Oper. Margin - 3 Yr. Avg. -116.5%
Pre-Tax Margin -300%
Pre-Tax Margin - 3 Yr. Avg. -127.6%
Net Profit Margin -300%
Net Profit Margin - 3 Yr. Avg. -127.6%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

VERI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the VERI stock intrinsic value calculation we used $14 million for the last fiscal year's total revenue generated by Veritone, Inc.. The default revenue input number comes from 0001 income statement of Veritone, Inc.. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our VERI stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for VERI is calculated based on our internal credit rating of Veritone, Inc., is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Veritone, Inc..
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of VERI stock the variable cost ratio is equal to 364.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for VERI stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Veritone, Inc..

Corporate tax rate of 27% is the nominal tax rate for Veritone, Inc.. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the VERI stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for VERI are equal to 8.6%.

Life of production assets of 8 years is the average useful life of capital assets used in Veritone, Inc. operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for VERI is equal to -90%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $61.302 million for Veritone, Inc. - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 19.329 million for Veritone, Inc. is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Veritone, Inc. at the current share price and the inputted number of shares is $0.2 billion.

RELATED COMPANIES Price Int.Val. Rating
AMZN Amazon.com, In 1,911.30 1,840.60  hold
IBM International 139.20 162.95  hold
MSFT Microsoft Corp 136.97 135.87  hold
GOOGL Alphabet Inc. 1,125.37 985.65  hold
NUAN Nuance Communi 16.39 16.14  hold
FICO Fair Isaac Cor 304.58 127.08  str.sell

CONTACT US      

About X-FIN       Privacy policy       Terms of use      

Copyright © X-FIN.com 2005-2019. All rigths reserved.