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 85th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Neophotonics Corp ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 8.56 -- which is good for besting 65.42% 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 5.48 years, is 0.66% -- higher than 85.1% of stocks in our DCF forecasting set.
The business' balance sheet suggests that 8% of the company's capital is sourced from debt; this is greater than just 22.09% of the free cash flow producing stocks we're observing.
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 NEWR, WSTG, CLS, LINX, and CTG.
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