Ciena Corporation provides equipment, software, and services that support the transport, switching, aggregation, service delivery, and management of voice, video, and data traffic on communications networks worldwide. The company was founded in 1992 and is based in Hanover, Maryland.
CIEN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Ciena Corp. To summarize, we found that Ciena Corp ranked in the 65th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for CIEN, they are:
The business' balance sheet suggests that 10% of the company's capital is sourced from debt; this is greater than merely 24.97% of the free cash flow producing stocks we're observing.
CIEN's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 34.35% of tickers in our DCF set.
The weighted average cost of capital for the company is 8. This value is greater than just 22.29% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Ciena Corp? See KN, DTST, SAIC, SAIL, and DGII.
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MarketGyrations on Seeking Alpha | September 25, 2020
HANOVER, Md.--(BUSINESS WIRE)--Telefónica Deutschland, a leading integrated telecommunications provider, has selected software from Blue Planet, a division of Ciena (NYSE: CIEN), to support the preparation of its network in Germany to adapt to escalating data traffic and bandwidth demands from users. Telefónica Deutschland is preparing its transport network with open, software-defined network (SDN) orchestration and a partially disaggregated multi-vendor optical network architecture to transfor
In order to better support its 5G, AI and cloud services via automation, Telefónica Deutschland picked software from Ciena's Blue Planet division. Telefónica Deutschland is building a new transport network with the help of Blue Planet's software.
In what could be a wake-up call to the technology sector, which has been resilient to the COVID crisis so far, network equipment maker Ciena Corp. (NYSE: CIEN) last week said its business would be affected by faltering orders even as telecom companies tighten their budgets to preserve liquidity, concerned over the deepening uncertainty. Ciena […]