EMCORE Corporation designs and manufactures Indium Phosphide optical chips, components, subsystems, and systems for the broadband and specialty fiber optics market. The company was founded in 1984 and is based in Alhambra, California.
EMKR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Emcore Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Emcore Corp ranked in the 5th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for EMKR, they are:
The company's debt burden, as measured by earnings divided by interest payments, is -411.64 -- which is good for besting only 1.69% of its peer stocks (US stocks in the Technology sector with positive cash flow).
Its compound free cash flow growth rate, as measured over the past 2.67 years, is -0.21% -- higher than merely 7.02% of stocks in our DCF forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AYX, HLIT, CASA, CCRC, and MU can be thought of as valuation peers to EMKR, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
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