Intrinsic value of Coherent - COHR

Previous Close

$307.32

  Intrinsic Value

$3,216

stock screener

  Rating & Target

str. buy

+946%

Previous close

$307.32

 
Intrinsic value

$3,216

 
Up/down potential

+946%

 
Rating

str. buy

We calculate the intrinsic value of COHR stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 7.6

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  6.86
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  857
  1,371
  2,119
  3,168
  4,597
  6,486
  8,916
  11,968
  15,715
  20,221
  25,541
  31,716
  38,776
  46,738
  55,610
  65,387
  76,061
  87,616
  100,033
  113,292
  127,374
  142,260
  157,934
  174,385
  191,605
  209,591
  228,347
  247,878
  268,200
  289,330
  311,292
Variable operating expenses, $m
 
  692
  1,063
  1,585
  2,296
  3,235
  4,443
  5,961
  7,824
  10,064
  12,710
  15,770
  19,280
  23,239
  27,650
  32,511
  37,819
  43,564
  49,738
  56,331
  63,332
  70,734
  78,527
  86,707
  95,269
  104,212
  113,537
  123,249
  133,353
  143,859
  154,779
Fixed operating expenses, $m
 
  309
  316
  324
  332
  341
  349
  358
  367
  376
  385
  395
  405
  415
  425
  436
  447
  458
  469
  481
  493
  506
  518
  531
  544
  558
  572
  586
  601
  616
  631
Total operating expenses, $m
  730
  1,001
  1,379
  1,909
  2,628
  3,576
  4,792
  6,319
  8,191
  10,440
  13,095
  16,165
  19,685
  23,654
  28,075
  32,947
  38,266
  44,022
  50,207
  56,812
  63,825
  71,240
  79,045
  87,238
  95,813
  104,770
  114,109
  123,835
  133,954
  144,475
  155,410
Operating income, $m
  128
  371
  739
  1,259
  1,969
  2,910
  4,124
  5,650
  7,524
  9,781
  12,446
  15,552
  19,091
  23,084
  27,534
  32,440
  37,795
  43,594
  49,826
  56,481
  63,549
  71,021
  78,889
  87,147
  95,792
  104,821
  114,237
  124,043
  134,246
  144,855
  155,882
EBITDA, $m
  162
  405
  787
  1,325
  2,061
  3,036
  4,292
  5,872
  7,814
  10,151
  12,910
  16,115
  19,781
  23,915
  28,523
  33,602
  39,148
  45,151
  51,604
  58,495
  65,813
  73,550
  81,697
  90,247
  99,198
  108,548
  118,297
  128,450
  139,014
  149,999
  161,416
Interest expense (income), $m
  0
  0
  5
  12
  22
  35
  53
  76
  104
  139
  182
  232
  290
  356
  431
  514
  606
  706
  814
  931
  1,055
  1,188
  1,327
  1,475
  1,629
  1,791
  1,959
  2,135
  2,319
  2,510
  2,708
Earnings before tax, $m
  123
  371
  734
  1,247
  1,947
  2,875
  4,071
  5,574
  7,420
  9,642
  12,265
  15,320
  18,802
  22,729
  27,104
  31,926
  37,190
  42,888
  49,011
  55,550
  62,493
  69,833
  77,562
  85,673
  94,163
  103,031
  112,278
  121,908
  131,927
  142,345
  153,174
Tax expense, $m
  35
  100
  198
  337
  526
  776
  1,099
  1,505
  2,003
  2,603
  3,311
  4,136
  5,076
  6,137
  7,318
  8,620
  10,041
  11,580
  13,233
  14,998
  16,873
  18,855
  20,942
  23,132
  25,424
  27,818
  30,315
  32,915
  35,620
  38,433
  41,357
Net income, $m
  88
  271
  536
  910
  1,421
  2,099
  2,972
  4,069
  5,417
  7,038
  8,953
  11,184
  13,725
  16,592
  19,786
  23,306
  27,148
  31,308
  35,778
  40,551
  45,620
  50,978
  56,620
  62,541
  68,739
  75,213
  81,963
  88,993
  96,307
  103,912
  111,817

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  400
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  1,161
  1,218
  1,881
  2,814
  4,083
  5,760
  7,918
  10,629
  13,956
  17,959
  22,683
  28,167
  34,437
  41,508
  49,387
  58,070
  67,549
  77,811
  88,839
  100,615
  113,121
  126,341
  140,262
  154,871
  170,164
  186,138
  202,795
  220,141
  238,188
  256,954
  276,458
Adjusted assets (=assets-cash), $m
  761
  1,218
  1,881
  2,814
  4,083
  5,760
  7,918
  10,629
  13,956
  17,959
  22,683
  28,167
  34,437
  41,508
  49,387
  58,070
  67,549
  77,811
  88,839
  100,615
  113,121
  126,341
  140,262
  154,871
  170,164
  186,138
  202,795
  220,141
  238,188
  256,954
  276,458
Revenue / Adjusted assets
  1.126
  1.126
  1.127
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
  1.126
Average production assets, $m
  82
  132
  203
  304
  441
  623
  856
  1,149
  1,509
  1,941
  2,452
  3,045
  3,723
  4,487
  5,339
  6,277
  7,302
  8,411
  9,603
  10,876
  12,228
  13,657
  15,162
  16,741
  18,394
  20,121
  21,921
  23,796
  25,747
  27,776
  29,884
Working capital, $m
  615
  376
  580
  868
  1,260
  1,777
  2,443
  3,279
  4,306
  5,541
  6,998
  8,690
  10,625
  12,806
  15,237
  17,916
  20,841
  24,007
  27,409
  31,042
  34,901
  38,979
  43,274
  47,782
  52,500
  57,428
  62,567
  67,919
  73,487
  79,276
  85,294
Total debt, $m
  20
  138
  338
  620
  1,003
  1,509
  2,161
  2,980
  3,985
  5,193
  6,620
  8,277
  10,170
  12,306
  14,685
  17,307
  20,170
  23,269
  26,599
  30,156
  33,933
  37,925
  42,129
  46,541
  51,160
  55,984
  61,014
  66,252
  71,703
  77,370
  83,260
Total liabilities, $m
  250
  368
  568
  850
  1,233
  1,739
  2,391
  3,210
  4,215
  5,423
  6,850
  8,507
  10,400
  12,536
  14,915
  17,537
  20,400
  23,499
  26,829
  30,386
  34,163
  38,155
  42,359
  46,771
  51,390
  56,214
  61,244
  66,482
  71,933
  77,600
  83,490
Total equity, $m
  911
  850
  1,313
  1,964
  2,850
  4,020
  5,527
  7,419
  9,742
  12,535
  15,833
  19,661
  24,037
  28,973
  34,472
  40,533
  47,150
  54,312
  62,010
  70,229
  78,958
  88,186
  97,903
  108,100
  118,775
  129,924
  141,551
  153,658
  166,255
  179,354
  192,968
Total liabilities and equity, $m
  1,161
  1,218
  1,881
  2,814
  4,083
  5,759
  7,918
  10,629
  13,957
  17,958
  22,683
  28,168
  34,437
  41,509
  49,387
  58,070
  67,550
  77,811
  88,839
  100,615
  113,121
  126,341
  140,262
  154,871
  170,165
  186,138
  202,795
  220,140
  238,188
  256,954
  276,458
Debt-to-equity ratio
  0.022
  0.160
  0.260
  0.320
  0.350
  0.380
  0.390
  0.400
  0.410
  0.410
  0.420
  0.420
  0.420
  0.420
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
  0.430
Adjusted equity ratio
  0.671
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698
  0.698

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  88
  271
  536
  910
  1,421
  2,099
  2,972
  4,069
  5,417
  7,038
  8,953
  11,184
  13,725
  16,592
  19,786
  23,306
  27,148
  31,308
  35,778
  40,551
  45,620
  50,978
  56,620
  62,541
  68,739
  75,213
  81,963
  88,993
  96,307
  103,912
  111,817
Depreciation, amort., depletion, $m
  34
  34
  48
  66
  92
  125
  169
  223
  289
  370
  464
  564
  689
  831
  989
  1,162
  1,352
  1,558
  1,778
  2,014
  2,264
  2,529
  2,808
  3,100
  3,406
  3,726
  4,059
  4,407
  4,768
  5,144
  5,534
Funds from operations, $m
  77
  305
  584
  977
  1,513
  2,224
  3,140
  4,292
  5,706
  7,408
  9,417
  11,747
  14,415
  17,423
  20,774
  24,468
  28,501
  32,866
  37,557
  42,565
  47,885
  53,507
  59,428
  65,641
  72,145
  78,939
  86,022
  93,399
  101,075
  109,056
  117,351
Change in working capital, $m
  -28
  141
  205
  288
  391
  517
  666
  836
  1,027
  1,235
  1,458
  1,692
  1,934
  2,182
  2,431
  2,679
  2,925
  3,166
  3,402
  3,633
  3,858
  4,079
  4,295
  4,508
  4,718
  4,928
  5,139
  5,352
  5,568
  5,790
  6,018
Cash from operations, $m
  105
  164
  379
  689
  1,122
  1,707
  2,474
  3,456
  4,680
  6,173
  7,960
  10,055
  12,480
  15,241
  18,344
  21,789
  25,576
  29,700
  34,154
  38,932
  44,026
  49,429
  55,133
  61,134
  67,427
  74,010
  80,883
  88,048
  95,507
  103,266
  111,333
Maintenance CAPEX, $m
  0
  -15
  -24
  -38
  -56
  -82
  -115
  -159
  -213
  -279
  -359
  -454
  -564
  -689
  -831
  -989
  -1,162
  -1,352
  -1,558
  -1,778
  -2,014
  -2,264
  -2,529
  -2,808
  -3,100
  -3,406
  -3,726
  -4,059
  -4,407
  -4,768
  -5,144
New CAPEX, $m
  -49
  -50
  -72
  -101
  -137
  -181
  -233
  -293
  -360
  -433
  -511
  -593
  -678
  -764
  -852
  -939
  -1,025
  -1,109
  -1,192
  -1,273
  -1,352
  -1,429
  -1,505
  -1,579
  -1,653
  -1,727
  -1,800
  -1,875
  -1,951
  -2,028
  -2,108
Cash from investing activities, $m
  103
  -65
  -96
  -139
  -193
  -263
  -348
  -452
  -573
  -712
  -870
  -1,047
  -1,242
  -1,453
  -1,683
  -1,928
  -2,187
  -2,461
  -2,750
  -3,051
  -3,366
  -3,693
  -4,034
  -4,387
  -4,753
  -5,133
  -5,526
  -5,934
  -6,358
  -6,796
  -7,252
Free cash flow, $m
  208
  99
  283
  551
  928
  1,444
  2,126
  3,004
  4,107
  5,461
  7,089
  9,008
  11,239
  13,787
  16,661
  19,862
  23,389
  27,238
  31,405
  35,881
  40,660
  45,735
  51,099
  56,747
  62,674
  68,877
  75,357
  82,113
  89,149
  96,470
  104,081
Issuance/(repayment) of debt, $m
  20
  138
  200
  282
  383
  507
  652
  819
  1,005
  1,209
  1,427
  1,656
  1,894
  2,136
  2,379
  2,622
  2,863
  3,099
  3,330
  3,556
  3,777
  3,992
  4,204
  4,412
  4,618
  4,824
  5,030
  5,239
  5,450
  5,667
  5,890
Issuance/(repurchase) of shares, $m
  2
  48
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  17
  186
  200
  282
  383
  507
  652
  819
  1,005
  1,209
  1,427
  1,656
  1,894
  2,136
  2,379
  2,622
  2,863
  3,099
  3,330
  3,556
  3,777
  3,992
  4,204
  4,412
  4,618
  4,824
  5,030
  5,239
  5,450
  5,667
  5,890
Total cash flow (excl. dividends), $m
  224
  286
  483
  832
  1,312
  1,950
  2,778
  3,823
  5,112
  6,670
  8,516
  10,665
  13,132
  15,923
  19,040
  22,484
  26,252
  30,337
  34,735
  39,437
  44,437
  49,728
  55,303
  61,159
  67,292
  73,701
  80,387
  87,352
  94,600
  102,137
  109,972
Retained Cash Flow (-), $m
  -115
  -319
  -463
  -651
  -886
  -1,171
  -1,507
  -1,892
  -2,323
  -2,793
  -3,298
  -3,828
  -4,376
  -4,936
  -5,499
  -6,061
  -6,617
  -7,163
  -7,697
  -8,220
  -8,729
  -9,228
  -9,716
  -10,198
  -10,674
  -11,150
  -11,626
  -12,108
  -12,597
  -13,098
  -13,614
Prev. year cash balance distribution, $m
 
  380
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  347
  20
  181
  426
  779
  1,271
  1,931
  2,789
  3,876
  5,219
  6,837
  8,756
  10,987
  13,541
  16,423
  19,635
  23,175
  27,038
  31,218
  35,708
  40,500
  45,587
  50,961
  56,618
  62,552
  68,761
  75,244
  82,002
  89,039
  96,358
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  332
  18
  158
  351
  604
  922
  1,304
  1,743
  2,227
  2,736
  3,247
  3,736
  4,178
  4,546
  4,822
  4,990
  5,042
  4,979
  4,807
  4,537
  4,189
  3,782
  3,340
  2,884
  2,433
  2,006
  1,615
  1,269
  972
  726
Current shareholders' claim on cash, %
  100
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9
  98.9

Coherent, Inc. is a photonics manufacturer. The Company is engaged in designing, manufacturing, servicing and marketing of lasers and related accessories for a range of scientific, commercial and industrial applications. It operates through two segments: Specialty Lasers and Systems (SLS) and Commercial Lasers and Components (CLC). SLS develops and manufactures configurable products serving the microelectronics, scientific research and government programs, and original equipment manufacturer (OEM) components and instrumentation markets. The Commercial Lasers and Components segment focuses on higher volume products that are offered in set configurations. The product architectures are designed for exchange at the point of use such that substantially all product service and repairs are based upon advanced replacement and depot (that is factory) repair. CLC's primary markets include materials processing, OEM components, and instrumentation and microelectronics.

FINANCIAL RATIOS  of  Coherent (COHR)

Valuation Ratios
P/E Ratio 84.9
Price to Sales 8.7
Price to Book 8.2
Price to Tangible Book
Price to Cash Flow 71.2
Price to Free Cash Flow 133.5
Growth Rates
Sales Growth Rate 6.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 122.7%
Cap. Spend. - 3 Yr. Gr. Rate 17.4%
Financial Strength
Quick Ratio 20
Current Ratio 0
LT Debt to Equity 0%
Total Debt to Equity 2.2%
Interest Coverage 0
Management Effectiveness
Return On Assets 8.3%
Ret/ On Assets - 3 Yr. Avg. 7.3%
Return On Total Capital 10.2%
Ret/ On T. Cap. - 3 Yr. Avg. 9%
Return On Equity 10.3%
Return On Equity - 3 Yr. Avg. 9.1%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 44.5%
Gross Margin - 3 Yr. Avg. 41.9%
EBITDA Margin 18.3%
EBITDA Margin - 3 Yr. Avg. 16.5%
Operating Margin 14.8%
Oper. Margin - 3 Yr. Avg. 12.3%
Pre-Tax Margin 14.4%
Pre-Tax Margin - 3 Yr. Avg. 12.3%
Net Profit Margin 10.3%
Net Profit Margin - 3 Yr. Avg. 9.1%
Effective Tax Rate 28.5%
Eff/ Tax Rate - 3 Yr. Avg. 25.9%
Payout Ratio 0%

COHR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the COHR stock intrinsic value calculation we used $857 million for the last fiscal year's total revenue generated by Coherent. The default revenue input number comes from 2016 income statement of Coherent. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our COHR stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for COHR is calculated based on our internal credit rating of Coherent, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Coherent.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of COHR stock the variable cost ratio is equal to 50.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $301 million in the base year in the intrinsic value calculation for COHR stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Coherent.

Corporate tax rate of 27% is the nominal tax rate for Coherent. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the COHR stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for COHR are equal to 9.6%.

Life of production assets of 5.4 years is the average useful life of capital assets used in Coherent operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for COHR is equal to 27.4%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $911 million for Coherent - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 24.637 million for Coherent is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Coherent at the current share price and the inputted number of shares is $7.6 billion.

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COMPANY NEWS

▶ Stocks Modestly Lower; These Two IBD 50 Leaders Are Breaking Out   [Nov-08-17 10:12AM  Investor's Business Daily]
▶ Coherent posts 4Q profit   [Nov-07-17 06:27PM  Associated Press]
▶ 3 Value Stocks to Dive Into   [Oct-30-17 07:15AM  Motley Fool]
▶ ETFs with exposure to Coherent, Inc. : October 16, 2017   [Oct-16-17 09:50AM  Capital Cube]
▶ ETFs with exposure to Coherent, Inc. : October 3, 2017   [Oct-03-17 11:06AM  Capital Cube]
▶ ETFs with exposure to Coherent, Inc. : September 22, 2017   [Sep-22-17 10:17AM  Capital Cube]
▶ ETFs with exposure to Coherent, Inc. : September 12, 2017   [Sep-11-17 10:21PM  Capital Cube]
▶ ETFs with exposure to Coherent, Inc. : September 1, 2017   [Sep-01-17 07:19PM  Capital Cube]
▶ ETFs with exposure to Coherent, Inc. : August 7, 2017   [Aug-07-17 04:24PM  Capital Cube]
▶ Why Coherent Shares Got Crushed Today   [01:07PM  Motley Fool]
▶ Coherent Down Sharply On Earnings   [05:31AM  Investor's Business Daily]
▶ Coherent posts 3Q profit   [Aug-01-17 09:48PM  Associated Press]
▶ 3 Companies Whose Sales Could Double in 2017   [Jul-29-17 02:06PM  Motley Fool]
▶ ETFs with exposure to Coherent, Inc. : July 24, 2017   [Jul-24-17 03:00PM  Capital Cube]
▶ ETFs with exposure to Coherent, Inc. : July 12, 2017   [Jul-12-17 02:22PM  Capital Cube]
▶ Apple Looking To Use OLED Screens On All New iPhones Next Year   [Jul-06-17 04:36PM  Investor's Business Daily]
▶ ETFs with exposure to Coherent, Inc. : June 30, 2017   [Jun-30-17 02:48PM  Capital Cube]
▶ [$$] Mid-Year Roundtable: 26 Investment Picks   [Jun-10-17 12:01AM  Barrons.com]
▶ Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks   [Jun-05-17 02:59PM  Investor's Business Daily]
▶ Sometimes an M&A Slam Dunk Takes Years   [12:16PM  Bloomberg]
▶ ETFs with exposure to Coherent, Inc. : May 19, 2017   [May-19-17 01:45PM  Capital Cube]
▶ Coherent posts 2Q profit   [May-09-17 06:34PM  Associated Press]
▶ Industry News And Stocks To Watch   [05:07PM  Investor's Business Daily]
▶ Act Brave! Buy Semi Niche Stocks   [Apr-18-17 05:25PM  Zacks]
▶ 7 Solid High-Flying Stocks with More Upside   [Apr-06-17 08:24AM  Zacks]
▶ Ride the Momentum with These 4 Hot Stocks   [Mar-31-17 11:13AM  Zacks]
Financial statements of COHR
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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