NeoPhotonics Corporation designs and manufactures hybrid photonic integrated optoelectronic modules and subsystems for bandwidth-intensive, high-speed communications networks.The company was formerly known as NanoGram Corporation and changed its name to NeoPhotonics Corporation in 2002. The company was founded in 1996 and is based in San Jose, California.
NPTN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Neophotonics Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Neophotonics Corp ranked in the 77th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 381%. As for the metrics that stood out in our discounted cash flow analysis of Neophotonics Corp, consider:
Neophotonics Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -7.05. This coverage rate is greater than that of only 6.31% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Neophotonics Corp experienced a tax rate of about 0% over the past twelve months; relative to its sector (Technology), this tax rate is higher than only 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PFPT, CIEN, TACT, ENPH, and TKAT can be thought of as valuation peers to NPTN, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.