Coupa Stock Story

COUP -  USA Stock  

USD 132.35  12.68  10.60%

While some of us are excited about technology space, it makes sense to recap Coupa Software in greater detail to make a better assessment of its actual value. We will evaluate why we are still confident in anticipation of a recovery. Is current the firm value sustainable? We will go over Coupa Software valuation drivers to give you a better outlook on taking a position in it.
Published over a month ago
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Our prognosis on Coupa Software (NASDAQ:COUP) to bounce back in January
The company currently holds 1.57 B in liabilities with Debt to Equity (D/E) ratio of 1.57, which is about average as compared to similar companies. Coupa Software has a current ratio of 0.75, indicating that it has a negative working capital and may not be able to pay financial obligations when due.
Macroaxis provides advice on Coupa Software to complement and cross-verify current analyst consensus on Coupa Software. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
We determine the current worth of Coupa Software using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Coupa Software based exclusively on its fundamental and basic technical indicators. By analyzing Coupa Software's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Coupa Software's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Coupa Software. We calculate exposure to Coupa Software's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Coupa Software's related companies.

Coupa Software Investment Alerts

Coupa investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Coupa Software performance across your portfolios.Please check all investment alerts for Coupa

Coupa Software Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Coupa value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Coupa Software competition to find correlations between indicators driving the intrinsic value of Coupa.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Coupa Software, but it might be worth checking our own buy vs. sell analysis

Detailed Outlook On Coupa Software

The entity reported the previous year's revenue of 589.36 M. Net Loss for the year was (265.66 M) with profit before overhead, payroll, taxes, and interest of 319.94 M.
 2018 2019 2020 2021 (projected)
Accounts Payable5.49 M3.52 M4.83 M5.21 M
Receivables95.27 M118.51 M196.01 M211.48 M

Margins Breakdown

Coupa profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Coupa Software itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Coupa Software profit margins.
Operating Margin(33.18)
EBITDA Margin(0.16)
Gross Margin0.58
Profit Margin(0.36)

Coupa Software Average Assets is increasing over the last 7 years. The recent value of Coupa Software Average Assets is 2,475,035,132. Coupa Software Net Income Per Employee is increasing over the last 7 years. The previous year's value of Coupa Software Net Income Per Employee was -74,113. Furthermore, Coupa Software Earnings Before Interest Taxes and Depreciation Amortization EBITDA is very stable at the moment. Coupa Software Average Assets is increasing over the last 7 years. Coupa Software Net Income Per Employee is increasing over the last 7 years. The previous year's value of Coupa Software Net Income Per Employee was -74,113. Furthermore, Coupa Software Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years.

Will Coupa continue to roll up?

Recent total risk alpha is at -0.43. Coupa Software exhibits very low volatility with skewness of -0.03 and kurtosis of 1.14. However, we advise investors to further study Coupa Software technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Coupa Software's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Coupa Software's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Coupa Software Implied Volatility

Coupa Software's implied volatility exposes the market's sentiment of Coupa Software stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Coupa Software's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Coupa Software stock will not fluctuate a lot when Coupa Software's options are near their expiration.

The Bottom Line

Although few other entities in the software—application industry are either recovering or due for a correction, Coupa may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take up nor exit any shares of Coupa Software at this time. The Coupa Software risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Coupa Software.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Coupa Software. Please refer to our Terms of Use for any information regarding our disclosure principles.

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