Is Atlassian Corp Plc (TEAM) overvalued?
On Equity Rank's model estimate, TEAM trades 327% above its fair value. Atlassian Corp Plc (TEAM) last closed at $153.68; the multi-method model fair value is $35.99.
| Price | Model fair value | Price vs model |
|---|---|---|
| $153.68 | $35.99 | 327% above |
What the answer rests on
- 2 of 5 valuation methods put TEAM's value above its price and 3 put it below, so the methods disagree.
- To justify today's price, TEAM's free cash flow would need to grow about 16.0% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 16.1% a year.
- Over the past year the price sat below the model fair value on 28% of trading days. The gap ranged from 27% below to 505% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind TEAM's fair value · What prices assume · Other companies