Coherent Inc. provides photonics-based solutions for a range of commercial and scientific research applications in the United States and internationally. The company operates through two segments: Specialty Lasers and Systems, and Commercial Lasers and Components. The company was founded in 1966 and is based in Santa Clara, California.
COHR 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 Coherent Inc. To summarize, we found that Coherent Inc ranked in the 24th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Coherent Inc ended up being:
The business' balance sheet suggests that 11% of the company's capital is sourced from debt; this is greater than merely 22.07% of the free cash flow producing stocks we're observing.
Coherent Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than 58.92% of stocks in its sector (Technology).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ITRI, LSCC, ESE, MANT, and COHU can be thought of as valuation peers to COHR, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.