Quantum (QMCO:NAS) Fundamental Valuation Report

Quantum (QMCO:NAS) Fundamental Valuation Report

Fundamental Valuation Report


Technology:Computer Hardware

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$7.51 (USD) 05/28/2021

Weighted Valuation
$7.75 (USD)

Overall Rating
Fairly valued to slightly Undervalued by 3.2%

Valuation Models Comparables: $7.67 (USD)
Comparables: $4.58 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Fairly valued on a Comparable Valuation
Asset: Overvalued on an Asset Valuation
According to Analyst consensus at $11.00 this stock is Undervalued

Company Overview (QMCO:NAS USD)

Price 7.51
Range 7.32 – 8.20
52 week 3.60 – 9.45
Open 8.16
Vol / Avg. 1.13M/376082
Mkt cap 428.72M
P/E 0.00
Div/yield 0.00/0.00
EPS -0.83
Shares 57.09M
Beta 2.21

Company Description

Quantum Corp is a United States-based company engaged in providing scale-out storage, archive, and data protection for small businesses and large multinational enterprises. Its solutions capture, share, manage and preserve digital assets throughout the data lifecycle. The scale-out portfolio offerings enable customers to manage large unstructured data sets, provide ingest capabilities, real-time collaboration, scalability, and protection. It derives primary revenues from the products based on tape technology. A majority of the firm’s revenue is generated in the Americas, with the rest coming from Europe and Asia-Pacific.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for QMCO:NAS

Using a discounted cash flow model we generated an intrinsic value of $1.96 (USD) for QMCO:NAS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

QMCO:NAS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $1.96 1% 5% 1% 5%
WACC (or Ke) 15.42 $2.14 $1.81
Terminal Growth Rate 3.00 $1.83 $2.11
Tax Rate 0.40 $2.22 $1.70
Cash Flow 42,688,302 $1.79 $2.12
Capital Expenditures -3,321,600 $1.95 $1.97
Long Term Debt 0 $1.96 $1.96

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $4.58 (USD) for QMCO:NAS. We also generated a valuation of $7.67 (USD) using other metrics and comparables.
The comparable companies were One Stop Systems (OSS:NAS), MICT (MICT:NAS), Super Micro Computer (SMCI:NAS), Transact Technologies (TACT:NAS) and Daktronics (DAKT:NAS).

Company QMCO:NAS End Date Value
Earnings/Share ($0.83) (USD)
Book Value/Share ($1.97) (USD)
Sales/Share $8.16 (USD)
Cash Flow/Share ($0.02) (USD)
EBITDA/Share ($0.05) (USD)
Price Based on Comps Adjustment Factor (%)
$0.00 (USD) 0.0
$0.00 (USD) 0.0
$14.43 (USD) -68.3
($2.35) (USD) -32.5
$0.00 (USD) 0.0
0.00 PE Ratio 44.02 80.76 0.00 20.56 0.00 30.73
0.00 PB Ratio 2.37 2.75 1.46 1.65 4.42 1.58
0.92 PS Ratio 3.38 1.91 9.81 0.55 3.99 0.62
0.00 PCF Ratio 13.29 20.81 0.00 0.00 0.00 5.76
0.00 EV to EBITDA 16.73 28.34 0.00 13.75 0.00 8.11


Using a multiples approach we generated a valuation of  $3.43 (USD) for QMCO:NAS

Company QMCO:NAS End Date Value
Earnings/Share ($0.83) (USD)
Book Value/Share ($1.97) (USD)
Sales/Share $8.16 (USD)
Cash Flow/Share ($0.02) (USD)
EBITDA/Share ($0.05) (USD)
Price Based on Comps Adjustment Factor
$0.00 (USD) 0
$0.00 (USD) 0
$3.43 (USD) 0
$0.00 (USD) 0
$0.00 (USD) 0
Ratios Ratio Average
PE Ratio 57.93
PB Ratio 0.00
PS Ratio 0.42
PCF Ratio 18.72
EV to EBITDA 27.57

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  QMCO:NAS for the last 10 years was  0.00

We ran the Adjusted Book Value for  QMCO:NAS and generated a book value of  ($1.97) (USD)
By multiplying these we get an adjusted valuation of  $0.00 (USD)

Analyst Data

In the Stockcalc database there are 1 analysts that provide a valuation for QMCO:NAS. The 1 analysts have a concensus valuation for QMCO:NAS for 2022 of $11.00 (USD).

QMCO:NAS Quantum

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
1 0 0 5.0000 Buy 2021-5-27

Current Price: 7.51 USD

Analyst Consensus
USD Millions 2022 2023
Mean EPS 0.18 0.51
# EPS Analysts 1 1
Mean Revenue 398.60 440.00
# Revenue Analysts 1 1
Mean Target Price 11.00
Mean Cash Flow 0.05 0.82
Mean Net Income 12.10 35.60
Mean Debt Outstanding
Mean Tax Rate 9.10 3.30
Mean Growth Rate
Mean Capital Expenditure 6.00 6.00

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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