AppFolio, Inc. (APPF)
Technology · NGM · US
Fundamentals
Valuation and ratings
AppFolio, Inc. trades at USD181.45, close to the USD156.31 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 82 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 43.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About AppFolio, Inc.
AppFolio, Inc., together with its subsidiaries, provides cloud-based platform for the real estate industry in the United States. The company provides a cloud-based platform that assist with accounting, reporting, marketing, leasing, maintenance, workflow automation, and communication services. It offers AppFolio Property Manager Core, a platform that provides the accounting functionalities for small property management companies, as well as serves as a system of record; AppFolio Property Manager Plus, which offers affordable housing and student housing, advanced accounting, advanced data analysis, and read-only API access services; and AppFolio Property Manager Max that provides customer relationship management tools and full database access through a read and write application programming interface services. The company also provides value-added services, such as electronic payment, tenant screening, maintenance, business optimization, resident, and risk mitigation services. It serves property managers, property investors, potential residents, residents, and vendors. AppFolio, Inc. was incorporated in 2006 and is headquartered in Santa Barbara, California.
APPF passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
12 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$60.69M · 0.0% of book
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$35.87M · 0.1% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$22.42M · 0.0% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$19.62M · 0.0% of book
- Marshall Wace, MARSHALL WACE, LLP$14.80M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is AppFolio, Inc. (APPF) undervalued?
Against our discounted cash flow estimate of USD156.31, APPF at USD181.45 is 14% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own APPF?
12 of the institutions we track reported a position in APPF in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is APPF's P/E ratio?
APPF trades at 43.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for APPF, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.