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:
Below please find a table outlining a discounted cash flow forecast for NPTN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Neophotonics Corp ranked in the 87th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1413.5% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for NPTN, they are:
The company's compound free cash flow growth rate over the past 5.24 years comes in at 0.67%; that's greater than 85.86% of US stocks we're applying DCF forecasting to.
NPTN'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 30.59% of tickers in our DCF set.
The weighted average cost of capital for the company is 8. This value is greater than only 19.11% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as NPTN, try SNX, BOX, GLGI, ETSY, and MX.
NeoPhotonics Corp (NPTN) Optical Communications Trends and Technologies Conference Call September 11, 2020 11:00 AM ET Company Participants Tim Jenks - Chairman and Chief Executive Officer Beth Eby - Chief Financial Officer Dr. Ferris Lipscomb - Chief Marketing Officer Dr. Winston Way - Chief Technology Officer Presentation Beth Eby Welcome...
SA Transcripts on Seeking Alpha | September 14, 2020
Yesterday, NeoPhotonics (NPTN) provided a business update regarding new tighter restrictions on key customer Huawei. The company still expects to achieve its Q3 outlook but is still accessing the impact beyond that.B. Riley upgrades NPTN from Neutral to Buy with a $9 price target "based on Huawei being de-risked while demand...