SolarWinds Corporation (SWI), Discounted Cash Flow Valuation

Solarwinds Corporation (SWI) Profile

US | Technology | Software - Infrastructure | NYSE
18.49 0.00 (0.00%)
Real-Time Price (USD)
Market Cap A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
3.2B
Revenue (ttm) The total amount of income generated by the sale of goods or services related to the company's primary operations.
796.89M
Net Income (ttm) The company's earnings for a period net of operating costs, taxes and interest.
111.9M
Shares Out Total number of common shares outstanding as of the latest date disclosed in a financial filing.
175.94M
EPS (ttm) Company's net earnings or losses from continuing operations on a per diluted share basis.
0.64
PE Ratio The price-to-earnings (PE) ratio is the ratio between a company's stock price and earnings per share. It measures the price of a stock relative to its profits.
21.56
Dividend Yield Measures the cash returned to shareholders by a firm as a percentage of the price they pay for each share of stock.
6.97%
Exchange Name of stock exchange where the trading item trades.
NYSE
Avg Volume The average number of shares traded each day over the past 30 days.
1.74M
Open The opening trade price over the trading day.
18.49
Previous Close The last closing price.
18.49
Beta A ratio that measures the risk or volatility of a company's share price in comparison to the market as a whole.
0.88
1 day delta The range between the high and low prices over the past day.
18.49-18.5
52 weeks The range between the high and low prices over the past 52 weeks.
10.1365-18.55

Total Valuation

SolarWinds Corporation has a market cap or net worth of 3.2B. The enterprise value is 3.01B.
Market Cap (ttm) Market Capitalization
A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
3.2B
Enterprise Value (ttm) Enterprise Value
Enterprise value measures the total value of a company's outstanding shares, adjusted for debt and levels of cash and short-term investments.
Enterprise Value = Market Cap + Total Debt - Cash & Equivalents - Short-Term Investments
3.01B

Valuation Ratios

The trailing PE ratio is 28.27. SolarWinds Corporation's PEG ratio is 0.15.
PE Ratio (ttm) PE Ratio
The price-to-earnings (P/E) ratio is a valuation metric that shows how expensive a stock is relative to earnings.
PE Ratio = Stock Price / Earnings Per Share
28.27
PS Ratio (ttm) PS Ratio
The price-to-sales (P/S) ratio is a commonly used valuation metric. It shows how expensive a stock is compared to revenue.
PS Ratio = Market Capitalization / Revenue
4.02
PB Ratio (ttm) PB Ratio
The price-to-book (P/B) ratio measures a stock's price relative to book value. Book value is also called Shareholders' equity.
PB Ratio = Market Capitalization / Shareholders' Equity
2.26
P/FCF Ratio (ttm) P/FCF Ratio
The price to free cash flow (P/FCF) ratio is similar to the P/E ratio, except it uses free cash flow instead of accounting earnings.
P/FCF Ratio = Market Capitalization / Free Cash Flow
17.9
PEG Ratio (ttm) PEG Ratio
The price/earnings to growth (PEG) ratio is calculated by dividing a company's PE ratio by its expected earnings growth.
PEG Ratio = PE Ratio / Expected Earnings Growth
0.15

Enterprise Valuation

The stock's EV/EBITDA ratio is 10.68, with a EV/FCF ratio of 16.83.
EV / Sales (ttm) EV / Sales Ratio
The enterprise value to sales (EV/Sales) ratio is similar to the price-to-sales ratio, but the price is adjusted for the company's debt and cash levels.
EV/Sales Ratio = Enterprise Value / Revenue
3.78
EV / EBITDA (ttm) EV / EBIT Ratio
The EV/EBITDA ratio measures a company's valuation relative to its EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization.
EV/EBITDA Ratio = Enterprise Value / EBITDA
10.68
EV / EBIT (ttm) EV/EBIT Ratio
The EV/EBIT is a valuation metric that measures a company's price relative to EBIT, or Earnings Before Interest and Taxes.
EV/EBIT Ratio = Enterprise Value / EBIT
15.99
EV / FCF (ttm) EV/FCF Ratio
The enterprise value to free cash flow (EV/FCF) ratio is similar to the price to free cash flow ratio, except the price is adjusted for the company's cash and debt.
EV/FCF Ratio = Enterprise Value / Free Cash Flow
16.83

Financial Efficiency

Return on equity (ROE) is 8.36% and return on invested capital (ROIC) is 8.71%.
Return on Equity (ROE) (ttm) Return on Equity (ROE)
Return on equity (ROE) is a profitability metric that shows how efficient a company is at using its equity (or "net" assets) to generate profits. It is calculated by dividing the company's net income by the average shareholders' equity over the past 12 months.
ROE = (Net Income / Average Shareholders' Equity) * 100%
8.36%
Return on Assets (ROA) (ttm) Return on Assets (ROA)
Return on assets (ROA) is a metric that measures how much profit a company is able to generate using its assets. It is calculated by dividing net income by the average total assets for the past 12 months.
ROA = (Net Income / Average Total Assets) * 100%
3.53%
Return on Capital (ROIC) (ttm) Return on Capital (ROIC)
Return on invested capital (ROIC) measures how effective a company is at investing its capital in order to increase profits. It is calculated by dividing the EBIT (Earnings Before Interest & Taxes) by the average invested capital in the previous year.
ROIC = (EBIT / Average Invested Capital) * 100%
8.71%
Asset Turnover Asset Turnover
The asset turnover ratio measures the amount of sales relative to a company's assets. It indicates how efficiently the company uses its assets to generate revenue.
Asset Turnover Ratio = Revenue / Average Assets
0.25
Inventory Turnover (ttm) Inventory Turnover
The inventory turnover ratio measures how many times inventory has been sold and replaced during a time period.
Inventory Turnover Ratio = Cost of Revenue / Average Inventory
0

Margins

Trailing 12 months gross margin is 86.66%, with operating and profit margins of 27.56% and 14.04%.
Gross Margin (ttm) Gross Margin
Gross margin is the percentage of revenue left as gross profits, after subtracting cost of goods sold from the revenue.
Gross Margin = (Gross Profit / Revenue) * 100%
86.66%
Operating Margin (ttm) Operating Margin
Operating margin is the percentage of revenue left as operating income, after subtracting cost of revenue and all operating expenses from the revenue.
Operating Margin = (Operating Income / Revenue) * 100%
27.56%
Pretax Margin (ttm) Pretax Margin
Pretax margin is the percentage of revenue left as profits before subtracting taxes.
Pretax Margin = (Pretax Income / Revenue) * 100%
13.03%
Profit Margin (ttm) Profit Margin
Profit margin is the percentage of revenue left as net income, or profits, after subtracting all costs and expenses from the revenue.
Profit Margin = (Net Income / Revenue) * 100%
14.04%
EBITDA Margin (ttm) EBITDA Margin
EBITDA margin is the percentage of revenue left as EBITDA, after subtracting all expenses except interest, taxes, depreciation and amortization from revenue.
EBITDA Margin = (EBITDA / Revenue) * 100%
35.38%

Income Statement

In the last 12 months, SolarWinds Corporation had revenue of 796.89M and earned 111.9M in profits. Earnings per share (EPS) was 0.64.
Revenue (ttm) Revenue
Revenue is the amount of money a company receives from its main business activities, such as sales of products or services. Revenue is also called sales.
796.89M
Gross Profit (ttm) Gross Profit
Gross profit is a company’s profit after subtracting the costs directly linked to making and delivering its products and services.
Gross Profit = Revenue - Cost of Revenue
690.58M
Operating Income (ttm) Operating Income
Operating income is the amount of profit in a company after paying for all the expenses related to its core operations.
Operating Income = Revenue - Cost of Revenue - Operating Expenses
219.63M
Pretax Income (ttm) Pretax Income
Pretax income is a company's profits before accounting for income taxes.
Pretax Income = Net Income + Income Taxes
103.8M
Net Income (ttm) Net Income
Net income is a company's accounting profits after subtracting all costs and expenses from the revenue. It is also called earnings, profits or "the bottom line"
Net Income = Revenue - All Expenses
111.9M
EBITDA (ttm) EBITDA
EBITDA stands for "Earnings Before Interest, Taxes, Depreciation and Amortization." It is a commonly used measure of profitability.
EBITDA = Net Income + Interest + Taxes + Depreciation and Amortization
281.95M
EBIT (ttm) EBIT
EBIT stands for "Earnings Before Interest and Taxes" and is a commonly used measure of earnings or profits. It is similar to operating income.
EBIT = Net Income + Interest + Taxes
207.6M
Earnings Per Share (EPS) (ttm) EPS (Diluted)
Earnings per share is the portion of a company's profit that is allocated to each individual stock. Diluted EPS is calculated by dividing net income by "diluted" shares outstanding.
Diluted EPS = Net Income / Shares Outstanding (Diluted)
0.64

Financial Position

The company has a trailing 12 months (ttm) current ratio of 0.85, with a ttm Debt / Equity ratio of 0.04.
Current Ratio (ttm) Current Ratio
The current ratio is used to measure a company's short-term liquidity. A low number can indicate that a company will have trouble paying its upcoming liabilities.
Current Ratio = Current Assets / Current Liabilities
0.85
Quick Ratio (ttm) Quick Ratio
The quick ratio measure a company's short-term liquidity. A low number indicates that the company may have trouble paying its upcoming financial obligations.
Quick Ratio = (Cash + Short-Term Investments + Accounts Receivable) / Current Liabilities
0.85
Debt / Equity (ttm) Debt / Equity Ratio
The debt-to-equity ratio measures a company's debt levels relative to its shareholders' equity or book value. A high ratio implies that a company has a lot of debt.
Debt / Equity Ratio = Total Debt / Shareholders' Equity
0.04
Debt / EBIT (ttm) Debt / EBIT Ratio
The debt-to-EBIT ratio is a company's debt levels relative to its trailing twelve-month EBIT. A high ratio implies that debt is high relative to the company's earnings.
Debt / EBIT Ratio = Total Debt / EBIT (ttm)
0.47

Dividends & Yields

This stock pays an annual dividend of 0, which amounts to a dividend yield of 0.00%.
Dividend Per Share (ttm) Dividend Per Share
Total amount paid to each outstanding share in dividends during the period.
0
Dividend Yield (ttm) Dividend Yield
The dividend yield is how much a stock pays in dividends each year, as a percentage of the stock price.
Dividend Yield = (Annual Dividends Per Share / Stock Price) * 100%
0.00%
Earnings Yield (ttm) Earnings Yield
The earnings yield is a valuation metric that measures a company's profits relative to stock price, expressed as a percentage yield. It is the inverse of the P/E ratio.
Earnings Yield = (Earnings Per Share / Stock Price) * 100%
3.54%
FCF Yield (ttm) FCF Yield
The free cash flow (FCF) yield measures a company's free cash flow relative to its price, shown as a percentage. It is the inverse of the P/FCF ratio.
FCF Yield = (Free Cash Flow / Market Cap) * 100%
5.59%
Dividend Growth (YoY) Dividend Growth
The change in dividend payments per share, compared to the previous period.
Dividend Growth = ((Current Dividend / Previous Dividend) - 1) * 100%
0.00%
Payout Ratio (ttm) Payout Ratio
The payout ratio is the percentage of a company's profits that are paid out as dividends. A high ratio implies that the dividend payments may not be sustainable.
Payout Ratio = (Dividends Per Share / Earnings Per Share) * 100%
150.27%

Balance Sheet

The company has 251.85M in cash and 61.72M in debt, giving a net cash position of 190.13M.
Cash & Cash Equivalents Cash & Cash Equivalents
Cash and cash equivalents is the sum of "Cash & Equivalents" and "Short-Term Investments." This is the amount of money that a company has quick access to, assuming that the cash equivalents and short-term investments can be sold at a short notice.
Cash & Cash Equivalents = Cash & Equivalents + Short-Term Investments
251.85M
Total Debt Total Debt
Total debt is the total amount of liabilities categorized as "debt" on the balance sheet. It includes both current and long-term (non-current) debt.
Total Debt = Current Debt + Long-Term Debt
61.72M
Net Cash Net Cash / Debt
Net Cash / Debt is an indicator of the financial position of a company. It is calculated by taking the total amount of cash and cash equivalents and subtracting the total debt.
Net Cash / Debt = Total Cash - Total Debt
190.13M
Book Value Shareholders' Equity
Shareholders’ equity is also called book value or net worth. It can be seen as the amount of money held by investors inside the company. It is calculated by subtracting all liabilities from all assets.
Shareholders' Equity = Total Assets - Total Liabilities
1.4B
Book Value Per Share (ttm) Book Value Per Share
Book value per share is the total amount of book value attributable to each individual stock. It is calculated by dividing book value (shareholders' equity) by the number of outstanding shares.
Book Value Per Share = Book Value / Shares Outstanding
8.19
Working Capital (ttm) Working Capital
Working capital is the amount of money available to a business to conduct its day-to-day operations. It is calculated by subtracting total current liabilities from total current assets.
Working Capital = Current Assets - Current Liabilities
-71.76M

Cash Flow

In the last 12 months, operating cash flow of the company was 188.3M and capital expenditures -9.59M, giving a free cash flow of 178.88M.
Operating Cash Flow (ttm) Operating Cash Flow
Operating cash flow, also called cash flow from operating activities, measures the amount of cash that a company generates from normal business activities. It is the amount of cash left after all cash income has been received, and all cash expenses have been paid.
188.3M
Capital Expenditures (ttm) Capital Expenditures
Capital expenditures are also called payments for property, plants and equipment. It measures cash spent on long-term assets that will be used to run the business, such as manufacturing equipment, real estate and others.
-9.59M
Free Cash Flow (ttm) Free Cash Flow
Free cash flow is the cash remaining after the company spends on everything required to maintain and grow the business. It is calculated by subtracting capital expenditures from operating cash flow.
Free Cash Flow = Operating Cash Flow - Capital Expenditures
178.88M
FCF Per Share (ttm) Free Cash Flow Per Share
Free cash flow per share is the amount of free cash flow attributed to each outstanding stock.
FCF Per Share = Free Cash Flow / Shares Outstanding
1.05

SolarWinds Corporation News

Apr 16, 2025 - businesswire.com
Turn/River Completes Acquisition of SolarWinds
AUSTIN, Texas--(BUSINESS WIRE)--SolarWinds Corporation (“SolarWinds” or the “Company”), a leading provider of simple, powerful, secure observability and IT management software, today announced the closing of its acquisition by Turn/River Capital. The transaction is valued at approximately $4.4 billion, with SolarWinds stockholders receiving $18.50 per share in cash. With the closing of the transaction, SolarWinds common stock has ceased trading, and the Company is no longer listed on the New Yo....[read more]
Apr 9, 2025 - prnewswire.com
Enact Holdings Set to Join S&P SmallCap 600
NEW YORK , April 9, 2025 /PRNewswire/ -- Enact Holdings Inc. (NASD: ACT) will replace SolarWinds Corp. (NYSE: SWI) in the S&P SmallCap 600 effective prior to the opening of trading on Wednesday, April 16. Turn/River Capital is acquiring SolarWinds in a deal expected to close soon, pending final closing conditions....[read more]
Apr 8, 2025 - businesswire.com
SolarWinds to Exhibit at GITEX 2025 Global Events
AUSTIN, Texas--(BUSINESS WIRE)--SolarWinds (NYSE:SWI), a leading provider of simple, powerful, secure observability and IT management software, today announced it will participate in the GITEX 2025 events taking place worldwide throughout the year. At the tech shows, SolarWinds will highlight its latest product innovations in its observability, database, and service management solutions designed to help customers meet modern IT challenges. SolarWinds enables companies to manage increasingly com....[read more]
Apr 2, 2025 - businesswire.com
SolarWinds Unveils Next-Generation Solutions to Tackle Modern IT Operational Resiliency Challenges
AUSTIN, Texas--(BUSINESS WIRE)--SolarWinds (NYSE:SWI), a leading provider of simple, powerful, and secure observability and IT management solutions, today announced a major step forward in helping businesses achieve IT operational resilience. The latest enhancements across the SolarWinds portfolio integrate expanded capabilities across observability, incident response, service management, and AI-powered automation—empowering IT teams to navigate complex hybrid environments, accelerate issue res....[read more]
Mar 11, 2025 - globenewswire.com
BUYOUT INVESTIGATION NOTICE: Kaskela Law LLC Announces Investigation into SolarWinds Corporation (NYSE: SWI) Shareholder Buyout Proposal and Encourages Investors to Contact the Firm
PHILADELPHIA, March 11, 2025 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that it is investigating the recently announced proposed buyout of SolarWinds Corporation (NYSE: SWI) (“SolarWinds”) shareholders....[read more]
Mar 3, 2025 - businesswire.com
SolarWinds Acquires Squadcast, Unifying Observability and Incident Response
AUSTIN, Texas--(BUSINESS WIRE)--SolarWinds (NYSE:SWI), a leading provider of simple, powerful, secure observability and IT management software, today announced that it has signed an agreement to acquire Squadcast, a customer-loved incident response solution company based in San Francisco. Squadcast, an advanced alternative to PagerDuty and OpsGenie, unites on-call alerting and incident response along with Site Reliability Engineering (SRE) workflows under one hood to automate human tasks effici....[read more]
Mar 3, 2025 - prnewswire.com
BUYOUT INVESTIGATION ALERT: Kaskela Law LLC Announces Investigation of SolarWinds Corporation (NYSE: SWI) Buyout and Encourages Investors to Contact the Firm
PHILADELPHIA , March 3, 2025 /PRNewswire/ -- Kaskela Law LLC announces that it is investigating the fairness of the recently announced buyout of SolarWinds Corporation (NYSE: SWI) ("SolarWinds") shareholders. Additional information: https://kaskelalaw.com/case/solarwinds-corp/ On February 7, 2025, SolarWinds announced that it had agreed to be acquired by private equity firm Turn/River Capital at a price of $18.50 per share....[read more]
Feb 27, 2025 - prnewswire.com
SHAREHOLDER ALERT: The M&A Class Action Firm Investigates the Merger of SolarWinds Corporation - SWI
NEW YORK , Feb. 27, 2025 /PRNewswire/ -- Monteverde & Associates PC (the "M&A Class Action Firm"), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm by ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating SolarWinds Corporation (NYSE: SWI ), relating to the proposed merger with Turn/River Capital....[read more]
Feb 25, 2025 - prnewswire.com
Shareholder Alert: The Ademi Firm investigates whether SolarWinds Corporation is obtaining a Fair Price for its Public Shareholders
MILWAUKEE , Feb. 25, 2025 /PRNewswire/ -- The Ademi Firm is investigating SolarWinds (NYSE: SWI) for possible breaches of fiduciary duty and other violations of law in its transaction with Turn/River Capital. Click here to learn how to join our investigation and obtain additional information or contact us at gademi@ademilaw.com or toll-free: 866-264-3995....[read more]
Feb 20, 2025 - globenewswire.com
SHAREHOLDER ALERT: Kaskela Law LLC Announces Investigation of SolarWinds Corporation (NYSE: SWI) Buyout and Encourages Investors to Contact the Firm
PHILADELPHIA, Feb. 20, 2025 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that it is investigating SolarWinds Corporation (NYSE: SWI) (“SolarWinds”) on behalf of the company's current shareholders....[read more]

SolarWinds Corporation Details

Country US
City Austin
Address Building 400
Ticker Symbol SWI
Exchange New York Stock Exchange
IPO Date Oct 19, 2018
CEO Mr. Sudhakar Ramakrishna
Sector Technology
Industry Software - Infrastructure
Employees 2.11K

SolarWinds Corporation Company Description

SolarWinds Corporation provides information technology (IT) management software products in the United States and internationally. The company offers a portfolio of solutions to technology professionals for monitoring, managing, and optimizing networks, systems, desktops, applications, storage, databases, website infrastructures, and IT service desks. It provides a suite of network management software that offers real-time visibility into network utilization and bandwidth, as well as the ability to detect, diagnose, and resolve network performance problems; and a suite of infrastructure management products, which monitor and analyze the performance of applications and their supporting infrastructure, including websites, servers, physical, virtual and cloud infrastructure, storage, and databases. The company also provides a suite of application performance management software that enable visibility into log data, cloud infrastructure metrics, applications, tracing, and web performance management; and service management software that offers ITIL-compliant service desk solutions for various companies. It markets and sells its products directly to network and systems engineers, database administrators, storage administrators, DevOps, SecOps, and service desk professionals. The company was formerly known as SolarWinds Parent, Inc. and changed its name to SolarWinds Corporation in May 2018. SolarWinds Corporation was founded in 1999 and is headquartered in Austin, Texas.

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