Sanmina provides end-to-end manufacturing solutions, delivering support to OEMs primarily in the communications, defense and aerospace, industrial and semiconductor systems, medical, multimedia, computing and storage, automotive and clean technology sectors. The company was founded in 1980 and is based in San Jose, California.
SANM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SANM, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Sanmina Corp ranked in the 65th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 189.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Sanmina Corp ended up being:
Sanmina Corp's effective tax rate, as measured by taxes paid relative to net income, is at 26 -- greater than 89.95% of US stocks with positive free cash flow.
Sanmina Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 8.66. This coverage rate is greater than that of 70.07% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 7. This value is greater than merely 18.43% 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 SANM, try RP, TTEC, WIX, SNX, and UPLD.