GoDaddy Inc. (NYSE: GDDY) provides small businesses, web designers, and individuals with cloud-based products and tailored customer care. It offers website design, hosting, and security solutions to secure customers' online visibility and other services like connecting with consumers and managing their business. Subscriptions, such as domain registrations and renewals, hosting and presentation solutions, and business apps are how GDDY makes money.
Valuation Methodology: Price/Earnings Per Share-Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
GDDY Daily Technical Chart (Source: REFINITIV)
GDDY's share price has surged 20.33% in the past three months and is currently leaning towards the mid-band of the 52-week range of USD 65.70 to USD 93.75. The stock is currently trading above its 50 and 200 DMA levels, and its RSI Index is at 72.74, indicating an overbought zone. We have valued the stock using the Price/Earnings-based relative valuation methodology and arrived at a target price of USD 70.58.
Considering the uptick in the stock price, current valuation, and technical indicators, we believe the decent business fundamentals are adequately reflected at current trading levels. Hence, we recommend a "Sell" rating on the stock at the current price of USD 83.69, down 0.11%, as of January 05, 2022, at 9:44 AM ET.
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.