Constant Contact (Constant Contact) Intrinsic Value: DCF (Dividends Based) : $ (As of May. 05, 2024)

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What is Constant Contact Intrinsic Value: DCF (Dividends Based)?

As of today (2024-05-05), Constant Contact's intrinsic value calculated from the Discounted Dividend model is $.

Note: Discounted Dividend model is only suitable for companies who have a consistant distribution history. If the company's dividends does not remain steady over a long period, results may not be accurate due to the low consistency. The model is also only suitable for predictable companies (Business Predictability Rank higher than 1-Star) with dividend payments. If the company's Predictability Rank is 1-Star or Not Rated, or if the company does not pay dividend, the data will not be stored into our database.

Constant Contact's Predictability Rank is Not Rated. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.

Margin of Safety % (DCF Dividends Based) using Discounted Dividend Model for Constant Contact is

The historical rank and industry rank for Constant Contact's Intrinsic Value: DCF (Dividends Based) or its related term are showing as below:

CTCT's Price-to-DCF (Dividends Based) is not ranked ^*
in the Media - Diversified industry.
Industry Median: 0.76
* Ranked among companies with meaningful Price-to-DCF (Dividends Based) only.

Constant Contact Intrinsic Value: DCF (Dividends Based) Historical Data

The historical data trend for Constant Contact's Intrinsic Value: DCF (Dividends Based) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Constant Contact Intrinsic Value: DCF (Dividends Based) Chart

Constant Contact Annual Data

Trend

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Intrinsic Value: DCF (Dividends Based)

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Constant Contact Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
Intrinsic Value: DCF (Dividends Based)	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of Constant Contact's Intrinsic Value: DCF (Dividends Based)

For the Advertising Agencies subindustry, Constant Contact's Price-to-DCF (Dividends Based), along with its competitors' market caps and Price-to-DCF (Dividends Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Constant Contact's Price-to-DCF (Dividends Based) Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Constant Contact's Price-to-DCF (Dividends Based) distribution charts can be found below:

* The bar in red indicates where Constant Contact's Price-to-DCF (Dividends Based) falls into.

Constant Contact Intrinsic Value: DCF (Dividends Based) Calculation

This is the intrinsic value calculated from the Discounted Dividend Model with default parameters. The calculation method is the same as Discounted Cash Flow model except adjusted dividend are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DDM calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.50%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Dividend Growth Rate in the growth stage: g1 = %
The Growth Rate in the growth stage is initially set as the default 10-Year Dividend Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year Dividend Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year Dividend Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=>

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = $.
GuruFocus uses adjusted dividends per share by default to ensure that the valuation reflects the total value of the company, as the actual dividend is only a portion of the total value.

All of the default settings can be changed in the DCF calculator and the results are calculated automatically.

Constant Contact's Intrinsic Value: DCF (Dividends Based) for today is calculated as:

Intrinsic Value: DCF (Dividends Based)	=	Dividends per Share	*	{[(1+g1)/(1+d)	+	(1+g1)^2/(1+d)^2	+	...	+	(1+g1)^10/(1+d)^10]
	+	(1+g1)^10/(1+d)^10	*	[(1+g2)/(1+d)	+	(1+g2)^2/(1+d)^2	+	...	+	(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+)/(1+0.11) =
and y = (1+g2)/(1+d) = (1+)/(1+0.11) =

Intrinsic Value: DCF (Dividends Based)

Dividends per Share

{[x

x^2

...

x^10]

x^10

y^2

...

y^10]}

Dividends per Share

(1-x^10)

(1-x)

x^10

(1-y^10)

(1-y)]

Margin of Safety % (DCF Dividends Based)	=	(Intrinsic Value: DCF (Dividends Based)	-	Current Price)	/	Intrinsic Value: DCF (Dividends Based)
	=	(	-	32.01)	/

Constant Contact (NAS:CTCT) Intrinsic Value: DCF (Dividends Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Dividends model evaluates the companies based on their power of future dividend distribution instead of their assets.

Be Aware

What you need to know about Discounted Dividends model:

1. The Discounted Dividends model evaluates a company based on its future dividends distribution power
2. Dividend growth is taken into account; therefore a company with a higher dividend growth rate is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies with consistently steady dividends distributed.
4. The Discounted Dividends model works poorly for inconsistent dividends distributor like high growth companies.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less dividends distributed.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) and Intrinsic Value: DCF (Dividends Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.

Constant Contact Intrinsic Value: DCF (Dividends Based) Related Terms

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Constant Contact (Constant Contact) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Constant Contact Inc (NAS:CTCT) » Definitions » Intrinsic Value: DCF (Dividends Based)

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.constantcontact.com

Constant Contact Inc was incorporated in Massachusetts in 1995 under the name Roving Software Incorporated. The Company provides online marketing tools that are designed for small organizations, including small businesses, associations and non-profits. Its suite of online marketing tools, which include Email Marketing, EventSpot, Social Campaigns, SaveLocal, SinglePlatform and Survey, enable its customers to launch and monitor marketing campaigns across multiple channels, including email, social media, events, local deals, online listings and surveys. Its customers include various types of small organizations including retailers, restaurants, law and accounting firms, consultants, non-profits, religious organizations and alumni associations. Its email marketing product allows customers to easily create, send and track professional-looking email campaigns. The product includes a campaign creation wizard that makes it easy to create and edit email campaigns with access to over 300 pre-designed email campaign templates that reflect a wide variety of themes and styles and over 15 million images through its relationship with Bigstock, a subsidiary of Shutterstock, Inc. The Company also offers market leading free tools and applications that allow customers to add and update contacts, including adding contacts directly from a computer or point of sale device. Its event marketing product allows its customers to promote and manage events, communicate with invitees and registrants, capture and track registrations and collect online payments. The Company's social media products include Social Campaigns, which empowers customers to reach and engage users on Facebook to grow their fans and create social word-of-mouth through easy-to-create offers and promotions. SaveLocal provides service to its customers to retain existing customers and attract new customers by creating, running and managing local deals, and provides them with end-to-end control over their deals at an affordable price. The Company's online survey product enables its customers to survey their customers or members and analyze responses. SinglePlatform provides its customers the power to manage all of their key online listings from one place by helping them to create a content rich digital storefront, which can include menus, photos, services, offers and featured products. As of December 31, 2013, the Company served a large and diverse group of approximately 595,000 unique paying customers. Its Social Campaigns product competes with offerings by Offerpop Corporation, Pagemodo, a subsidiary of VistaPrint N.V., Vocus Social Media LLC doing business as North Social and Wildfire Interactive, Inc. Its SaveLocal product competes with offerings by Groupon, Inc., LivingSocial, Inc., Amazon Local and Google Offers. Its SinglePlatform product competes with offerings by Yext, Inc. and Locu Inc., a subsidiary of GoDaddy.com, LLC. Its survey product competes with offerings by Surveymonkey.c

Executives

Harpreet Grewal	officer: EVP, Chief Financial Officer	C/O VISTAPRINT USA, INCORPORATED, 100 HAYDEN AVE., LEXINGTON MA 02050
Kenneth J Surdan	officer: Senior VP, Product	C/O ENDURANCE INTERNATIONAL GROUP 10 CORPORATE DRIVE, SUITE 300 BURLINGTON MA 01803
Robert P Nault	officer: SVP & General Counsel	C/O MIMECAST LIMITED, MIMECAST NA, INC. 191 SPRING STREET LEXINGTON MA 02421
Julie Mb Bradley	director	C/O TRIPADVISOR, INC., 141 NEEDHAM STREET, NEWTON MA 02464
Robert P Badavas	director	C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO IL 94301
Sharon T Rowlands	director	195 BROADWAY, NEW YORK NY 10007
Rick W Jensen	officer: SVP, Chief Sales & Mktg. Off.	C/O CONSTANT CONTACT, RESERVOIR PLACE, 1601 TRAPELO RD., SUITE 246, WALTHAM MA 02451
Walsh John J Jr	officer: SVP, Engineering & Operations	1601 TRAPELO ROAD, SUITE 329 C/O CONSTANT CONTACT, INC. WALTHAM MA 02451
Stanley Morgan	10 percent owner	1585 BROADWAY, NEW YORK NY 10036
Greylock Xii Gp Llc	10 percent owner	2550 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025
Greylock Xii Limited Partnership	10 percent owner	40 GROVE STREET, SUITE 430, WELLESLEY MA 02482