C

CS Disco Inc
NYSE:LAW

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CS Disco Inc
NYSE:LAW
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Price: 5.98 USD 0.5%
Market Cap: 355.7m USD
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Intrinsic Value

LAW's intrinsic value estimate is unreliable because it is based only on its multiples and doesn't use a DCF valuation.

The intrinsic value of one LAW stock under the Base Case scenario is 7.55 USD. Compared to the current market price of 5.98 USD, CS Disco Inc is Undervalued by 21%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

LAW Intrinsic Value
7.55 USD
Undervaluation 21%
Intrinsic Value
Price
C
Base Case Scenario

Valuation Backtest
CS Disco Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
CS Disco Inc

Current Assets 160.2m
Cash & Short-Term Investments 130m
Receivables 25.3m
Other Current Assets 4.8m
Non-Current Assets 37.9m
PP&E 16.6m
Intangibles 20.4m
Other Non-Current Assets 808k
Current Liabilities 20.5m
Accounts Payable 4m
Accrued Liabilities 12.9m
Other Current Liabilities 3.6m
Non-Current Liabilities 6.6m
Long-Term Debt 137k
Other Non-Current Liabilities 6.5m
Efficiency

Earnings Waterfall
CS Disco Inc

Revenue
142.3m USD
Cost of Revenue
-35.8m USD
Gross Profit
106.5m USD
Operating Expenses
-141.2m USD
Operating Income
-34.7m USD
Other Expenses
6.4m USD
Net Income
-28.3m USD

Free Cash Flow Analysis
CS Disco Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

Disco’s Q2 2024 revenue climbed 5% year-over-year to $36 million, with software revenue growing by 8%, marking the fifth consecutive quarter of growth. Despite an adjusted EBITDA of negative $4.7 million and a net loss of $0.07 per share, the company ended the quarter with $130 million in cash and no debt. The management aims to boost growth through a customer-focused strategy and operational improvements. Guidance for Q3 2024 projects total revenue between $35.3 million and $37.3 million with an adjusted EBITDA range of negative $7 million to negative $5 million. For fiscal year 2024, revenue is expected to fall between $143 million and $147 million.

What is Earnings Call?
Fundamental Scores

LAW Profitability Score
Profitability Due Diligence

CS Disco Inc's profitability score is 25/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive 3-Years Revenue Growth
Positive Revenue Growth Forecast
Positive 1-Year Revenue Growth
25/100
Profitability
Score

CS Disco Inc's profitability score is 25/100. The higher the profitability score, the more profitable the company is.

LAW Solvency Score
Solvency Due Diligence

CS Disco Inc's solvency score is 87/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Short-Term Solvency
Long-Term Solvency
Negative Net Debt
87/100
Solvency
Score

CS Disco Inc's solvency score is 87/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

LAW Price Targets Summary
CS Disco Inc

Wall Street analysts forecast LAW stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for LAW is 7.04 USD with a low forecast of 5.56 USD and a high forecast of 9.45 USD.

Lowest
Price Target
5.56 USD
7% Downside
Average
Price Target
7.04 USD
18% Upside
Highest
Price Target
9.45 USD
58% Upside
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Dividends

CS Disco Inc
does not pay dividends
Shareholder Yield

Current shareholder yield for LAW is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
No dividends
Buyback Yield
Lowest
Average
Highest
Debt Paydown Yield
Lowest
Average
Highest

Ownership

LAW Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Profile

CS Disco Inc

Country

United States of America

Industry

Technology

Market Cap

353.6m USD

Dividend Yield

0%

Description

CS Disco, Inc. provides legal technology solutions. The company is headquartered in Austin, Texas and currently employs 470 full-time employees. The company went IPO on 2021-07-21. The Company’s solution enables legal departments to collect, process and review enterprise data, which is relevant to legal matters. Its cloud-native architecture and AI models automatically identify legally relevant documents and improve the accuracy and speed of legal document review. Its solution includes DISCO Ediscovery, DISCO Review and DISCO Case Builder. DISCO Ediscovery automates the e-discovery process. DISCO Review is an AI-powered document review, which delivers legal document reviews. Through DISCO Case Builder, legal professionals build a compelling case by offering a place to search, organize and review witness testimony and other important legal data.

Contact

TEXAS
Austin
3700 N. Capital Of Texas Highway, Suite 150
+18336534726.0
www.csdisco.com

IPO

2021-07-21

Employees

470

Officers

Executive VP & CFO
Mr. Michael S. Lafair
President, CEO & Director
Mr. Eric Friedrichsen
Senior Vice President of Operations
Mr. Joe Jacobson
Director of Accounting
Kristen Stanley
Senior Director of Finance & Head of Investor Relations
Aleksey Lakchakov
General Counsel & Chief Compliance Officer
Ms. Susan Garcia
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Chief Marketing Officer
Mr. Tom Furr
Senior Vice President of Global Sales
Ms. Andrea Popovecz
Chief Human Resources Officer
Ms. Karen Herckis
Executive VP & Chief Customer Officer
Ms. Melanie Antoon
Show Less

See Also

Discover More
What is the Intrinsic Value of one LAW stock?

The intrinsic value of one LAW stock under the Base Case scenario is 7.55 USD.

Is LAW stock undervalued or overvalued?

Compared to the current market price of 5.98 USD, CS Disco Inc is Undervalued by 21%.

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