Intrinsic value of Cypress Semiconductor - CY

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$13.01

  Intrinsic Value

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  Value-price divergence*

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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of CY 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 2017), $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 4.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  19.59
  17.80
  16.52
  15.37
  14.33
  13.40
  12.56
  11.80
  11.12
  10.51
  9.96
  9.46
  9.02
  8.62
  8.25
  7.93
  7.64
  7.37
  7.13
  6.92
  6.73
  6.56
  6.40
  6.26
  6.13
  6.02
  5.92
  5.83
  5.74
  5.67
  5.60
Revenue, $m
  1,923
  2,265
  2,640
  3,045
  3,482
  3,948
  4,444
  4,968
  5,521
  6,101
  6,709
  7,344
  8,006
  8,695
  9,413
  10,159
  10,935
  11,741
  12,579
  13,450
  14,355
  15,296
  16,275
  17,294
  18,355
  19,460
  20,612
  21,813
  23,066
  24,373
  25,739
Variable operating expenses, $m
 
  2,699
  3,106
  3,548
  4,023
  4,530
  5,070
  5,640
  6,242
  6,873
  7,534
  7,991
  8,711
  9,462
  10,243
  11,055
  11,899
  12,776
  13,687
  14,635
  15,619
  16,643
  17,709
  18,817
  19,972
  21,174
  22,428
  23,734
  25,098
  26,521
  28,007
Fixed operating expenses, $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
Total operating expenses, $m
  2,535
  2,699
  3,106
  3,548
  4,023
  4,530
  5,070
  5,640
  6,242
  6,873
  7,534
  7,991
  8,711
  9,462
  10,243
  11,055
  11,899
  12,776
  13,687
  14,635
  15,619
  16,643
  17,709
  18,817
  19,972
  21,174
  22,428
  23,734
  25,098
  26,521
  28,007
Operating income, $m
  -612
  -434
  -467
  -503
  -541
  -582
  -626
  -672
  -721
  -772
  -825
  -647
  -705
  -766
  -829
  -895
  -963
  -1,034
  -1,108
  -1,185
  -1,265
  -1,348
  -1,434
  -1,524
  -1,617
  -1,715
  -1,816
  -1,922
  -2,032
  -2,147
  -2,268
EBITDA, $m
  -346
  -134
  -156
  -180
  -206
  -233
  -263
  -294
  -326
  -361
  -397
  -434
  -473
  -514
  -556
  -601
  -646
  -694
  -744
  -795
  -849
  -904
  -962
  -1,022
  -1,085
  -1,150
  -1,218
  -1,289
  -1,364
  -1,441
  -1,522
Interest expense (income), $m
  33
  42
  54
  68
  82
  98
  115
  133
  152
  171
  192
  214
  237
  261
  286
  312
  339
  366
  395
  426
  457
  490
  524
  559
  596
  634
  674
  715
  758
  803
  851
Earnings before tax, $m
  -667
  -476
  -521
  -570
  -623
  -680
  -741
  -805
  -872
  -943
  -1,018
  -861
  -942
  -1,027
  -1,115
  -1,207
  -1,302
  -1,401
  -1,504
  -1,611
  -1,722
  -1,837
  -1,957
  -2,082
  -2,213
  -2,348
  -2,490
  -2,637
  -2,791
  -2,951
  -3,118
Tax expense, $m
  2
  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
Net income, $m
  -686
  -476
  -521
  -570
  -623
  -680
  -741
  -805
  -872
  -943
  -1,018
  -861
  -942
  -1,027
  -1,115
  -1,207
  -1,302
  -1,401
  -1,504
  -1,611
  -1,722
  -1,837
  -1,957
  -2,082
  -2,213
  -2,348
  -2,490
  -2,637
  -2,791
  -2,951
  -3,118

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  120
  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
  3,872
  4,416
  5,145
  5,936
  6,787
  7,696
  8,662
  9,685
  10,762
  11,893
  13,078
  14,315
  15,606
  16,950
  18,349
  19,804
  21,316
  22,888
  24,521
  26,218
  27,982
  29,816
  31,725
  33,711
  35,779
  37,933
  40,178
  42,520
  44,962
  47,511
  50,173
Adjusted assets (=assets-cash), $m
  3,752
  4,416
  5,145
  5,936
  6,787
  7,696
  8,662
  9,685
  10,762
  11,893
  13,078
  14,315
  15,606
  16,950
  18,349
  19,804
  21,316
  22,888
  24,521
  26,218
  27,982
  29,816
  31,725
  33,711
  35,779
  37,933
  40,178
  42,520
  44,962
  47,511
  50,173
Revenue / Adjusted assets
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
  0.513
Average production assets, $m
  1,209
  716
  834
  962
  1,100
  1,248
  1,404
  1,570
  1,745
  1,928
  2,120
  2,321
  2,530
  2,748
  2,975
  3,210
  3,456
  3,710
  3,975
  4,250
  4,536
  4,833
  5,143
  5,465
  5,800
  6,149
  6,513
  6,893
  7,289
  7,702
  8,134
Working capital, $m
  192
  -193
  -224
  -259
  -296
  -336
  -378
  -422
  -469
  -519
  -570
  -624
  -680
  -739
  -800
  -864
  -929
  -998
  -1,069
  -1,143
  -1,220
  -1,300
  -1,383
  -1,470
  -1,560
  -1,654
  -1,752
  -1,854
  -1,961
  -2,072
  -2,188
Total debt, $m
  1,225
  1,547
  1,932
  2,349
  2,798
  3,278
  3,789
  4,329
  4,897
  5,495
  6,120
  6,773
  7,455
  8,165
  8,903
  9,672
  10,470
  11,300
  12,162
  13,058
  13,989
  14,958
  15,966
  17,014
  18,106
  19,244
  20,429
  21,665
  22,955
  24,301
  25,707
Total liabilities, $m
  1,980
  2,332
  2,717
  3,134
  3,583
  4,063
  4,574
  5,114
  5,682
  6,280
  6,905
  7,558
  8,240
  8,950
  9,688
  10,457
  11,255
  12,085
  12,947
  13,843
  14,774
  15,743
  16,751
  17,799
  18,891
  20,029
  21,214
  22,450
  23,740
  25,086
  26,492
Total equity, $m
  1,892
  2,084
  2,429
  2,802
  3,203
  3,632
  4,089
  4,571
  5,080
  5,614
  6,173
  6,757
  7,366
  8,001
  8,661
  9,348
  10,061
  10,803
  11,574
  12,375
  13,207
  14,073
  14,974
  15,912
  16,888
  17,904
  18,964
  20,069
  21,222
  22,425
  23,682
Total liabilities and equity, $m
  3,872
  4,416
  5,146
  5,936
  6,786
  7,695
  8,663
  9,685
  10,762
  11,894
  13,078
  14,315
  15,606
  16,951
  18,349
  19,805
  21,316
  22,888
  24,521
  26,218
  27,981
  29,816
  31,725
  33,711
  35,779
  37,933
  40,178
  42,519
  44,962
  47,511
  50,174
Debt-to-equity ratio
  0.647
  0.740
  0.800
  0.840
  0.870
  0.900
  0.930
  0.950
  0.960
  0.980
  0.990
  1.000
  1.010
  1.020
  1.030
  1.030
  1.040
  1.050
  1.050
  1.060
  1.060
  1.060
  1.070
  1.070
  1.070
  1.070
  1.080
  1.080
  1.080
  1.080
  1.090
Adjusted equity ratio
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472
  0.472

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -686
  -476
  -521
  -570
  -623
  -680
  -741
  -805
  -872
  -943
  -1,018
  -861
  -942
  -1,027
  -1,115
  -1,207
  -1,302
  -1,401
  -1,504
  -1,611
  -1,722
  -1,837
  -1,957
  -2,082
  -2,213
  -2,348
  -2,490
  -2,637
  -2,791
  -2,951
  -3,118
Depreciation, amort., depletion, $m
  266
  300
  311
  323
  335
  349
  363
  378
  394
  411
  429
  213
  232
  252
  273
  295
  317
  340
  365
  390
  416
  443
  472
  501
  532
  564
  598
  632
  669
  707
  746
Funds from operations, $m
  237
  -176
  -210
  -248
  -288
  -331
  -377
  -426
  -478
  -532
  -589
  -648
  -710
  -775
  -842
  -912
  -985
  -1,061
  -1,139
  -1,221
  -1,306
  -1,394
  -1,486
  -1,581
  -1,681
  -1,784
  -1,892
  -2,004
  -2,122
  -2,244
  -2,372
Change in working capital, $m
  20
  -29
  -32
  -34
  -37
  -40
  -42
  -45
  -47
  -49
  -52
  -54
  -56
  -59
  -61
  -63
  -66
  -69
  -71
  -74
  -77
  -80
  -83
  -87
  -90
  -94
  -98
  -102
  -107
  -111
  -116
Cash from operations, $m
  217
  -754
  -178
  -213
  -251
  -292
  -335
  -382
  -431
  -483
  -537
  -594
  -654
  -716
  -781
  -849
  -919
  -992
  -1,068
  -1,147
  -1,229
  -1,314
  -1,402
  -1,495
  -1,590
  -1,690
  -1,794
  -1,902
  -2,015
  -2,133
  -2,256
Maintenance CAPEX, $m
  0
  -56
  -66
  -77
  -88
  -101
  -114
  -129
  -144
  -160
  -177
  -194
  -213
  -232
  -252
  -273
  -295
  -317
  -340
  -365
  -390
  -416
  -443
  -472
  -501
  -532
  -564
  -598
  -632
  -669
  -707
New CAPEX, $m
  -57
  -109
  -118
  -128
  -138
  -147
  -157
  -166
  -175
  -183
  -192
  -201
  -209
  -218
  -227
  -236
  -245
  -255
  -265
  -275
  -286
  -297
  -309
  -322
  -335
  -349
  -364
  -380
  -396
  -413
  -432
Cash from investing activities, $m
  -613
  -165
  -184
  -205
  -226
  -248
  -271
  -295
  -319
  -343
  -369
  -395
  -422
  -450
  -479
  -509
  -540
  -572
  -605
  -640
  -676
  -713
  -752
  -794
  -836
  -881
  -928
  -978
  -1,028
  -1,082
  -1,139
Free cash flow, $m
  -396
  -918
  -362
  -418
  -477
  -540
  -606
  -676
  -750
  -826
  -906
  -989
  -1,076
  -1,166
  -1,260
  -1,358
  -1,459
  -1,564
  -1,673
  -1,787
  -1,905
  -2,027
  -2,155
  -2,288
  -2,427
  -2,572
  -2,722
  -2,879
  -3,044
  -3,215
  -3,394
Issuance/(repayment) of debt, $m
  599
  352
  385
  418
  449
  480
  510
  540
  569
  597
  625
  653
  682
  710
  739
  768
  798
  830
  862
  896
  932
  969
  1,008
  1,049
  1,092
  1,137
  1,185
  1,236
  1,290
  1,346
  1,406
Issuance/(repurchase) of shares, $m
  -132
  759
  321
  374
  429
  489
  552
  619
  689
  763
  840
  920
  1,004
  1,091
  1,182
  1,276
  1,374
  1,476
  1,582
  1,692
  1,806
  1,925
  2,048
  2,177
  2,311
  2,451
  2,596
  2,748
  2,907
  3,072
  3,245
Cash from financing (excl. dividends), $m  
  431
  1,111
  706
  792
  878
  969
  1,062
  1,159
  1,258
  1,360
  1,465
  1,573
  1,686
  1,801
  1,921
  2,044
  2,172
  2,306
  2,444
  2,588
  2,738
  2,894
  3,056
  3,226
  3,403
  3,588
  3,781
  3,984
  4,197
  4,418
  4,651
Total cash flow (excl. dividends), $m
  34
  -567
  23
  0
  -28
  -60
  -96
  -136
  -181
  -229
  -281
  -336
  -395
  -457
  -521
  -589
  -660
  -734
  -811
  -890
  -973
  -1,059
  -1,148
  -1,240
  -1,335
  -1,434
  -1,537
  -1,643
  -1,754
  -1,869
  -1,989
Retained Cash Flow (-), $m
  829
  -313
  -344
  -373
  -402
  -429
  -456
  -483
  -508
  -534
  -559
  -584
  -609
  -635
  -660
  -687
  -714
  -742
  -771
  -801
  -833
  -866
  -901
  -937
  -976
  -1,017
  -1,060
  -1,105
  -1,153
  -1,203
  -1,256
Prev. year cash balance distribution, $m
 
  121
  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
 
  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
Discount rate, %
 
  8.40
  8.82
  9.26
  9.72
  10.21
  10.72
  11.26
  11.82
  12.41
  13.03
  13.68
  14.37
  15.09
  15.84
  16.63
  17.46
  18.34
  19.25
  20.22
  21.23
  22.29
  23.40
  24.57
  25.80
  27.09
  28.45
  29.87
  31.36
  32.93
  34.58
PV of cash for distribution, $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
Current shareholders' claim on cash, %
  100
  84.0
  78.6
  73.5
  68.8
  64.5
  60.4
  56.6
  53.0
  49.7
  46.6
  43.7
  41.0
  38.4
  36.1
  33.8
  31.8
  29.8
  28.0
  26.3
  24.7
  23.2
  21.8
  20.4
  19.2
  18.0
  16.9
  15.9
  15.0
  14.0
  13.2

Cypress Semiconductor Corporation designs, develops, manufactures, markets, and sells mixed-signal programmable solutions worldwide. The company’s Programmable Solutions division designs and develops programmable solutions, including Traveo automotive microcontrollers; programmable system-on-chip products; ARM Cortex-M4, -M3, and -M0+ microcontrollers; R4 CPUs; analog power management integrated circuits; CapSense capacitive-sensing controllers; TrueTouch touchscreen and fingerprint reader products; and Bluetooth low energy solutions for the Internet of things. Its Memory Products division designs and manufactures NOR and NAND flash memories, static random access memory (SRAM) products, HyperRAm, synchronous and asynchronous SRAMs, nvSRAMs, F-RAM ferroelectric memory devices, dual port memories, first-in first-out memories, RoboClock buffers, and programmable clocks. The company’s Data Communications division provides universal serial bus (USB) controllers; Bluetooth low energy and wirelessUSB solutions; module solutions, such as trackpads and Bluetooth low energy modules; and controllers for the new USB type-C standards. Its Emerging Technology division provides wafer level chip scale packaging solutions and foundry services, as well as other development stage activities. The company serves various markets, including automotive, industrial, communications, consumer, computation, data communications, mobile handsets, and military markets. It sells its semiconductor products through distributors and manufacturing representative firms, as well as through sales force to direct original equipment manufacturers and their suppliers. The company has a strategic foundry partnership with HuaHong Grace Semiconductor Manufacturing Corporation and United Microelectronics Corporation. Cypress Semiconductor Corporation was founded in 1982 and is headquartered in San Jose, California.

FINANCIAL RATIOS  of  Cypress Semiconductor (CY)

Valuation Ratios
P/E Ratio -6.1
Price to Sales 2.2
Price to Book 2.2
Price to Tangible Book
Price to Cash Flow 19.4
Price to Free Cash Flow 26.3
Growth Rates
Sales Growth Rate 19.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 21.3%
Cap. Spend. - 3 Yr. Gr. Rate 9%
Financial Strength
Quick Ratio 4
Current Ratio 0.1
LT Debt to Equity 63.2%
Total Debt to Equity 64.7%
Interest Coverage -19
Management Effectiveness
Return On Assets -16.6%
Ret/ On Assets - 3 Yr. Avg. -9.9%
Return On Total Capital -21%
Ret/ On T. Cap. - 3 Yr. Avg. -12.2%
Return On Equity -29.7%
Return On Equity - 3 Yr. Avg. -15.4%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 35.6%
Gross Margin - 3 Yr. Avg. 36.9%
EBITDA Margin -19.1%
EBITDA Margin - 3 Yr. Avg. -5.5%
Operating Margin -31.8%
Oper. Margin - 3 Yr. Avg. -16.5%
Pre-Tax Margin -34.7%
Pre-Tax Margin - 3 Yr. Avg. -18%
Net Profit Margin -35.7%
Net Profit Margin - 3 Yr. Avg. -18.9%
Effective Tax Rate -0.3%
Eff/ Tax Rate - 3 Yr. Avg. -5%
Payout Ratio -20.6%

CY stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CY stock intrinsic value calculation we used $1923 million for the last fiscal year's total revenue generated by Cypress Semiconductor. The default revenue input number comes from 2017 income statement of Cypress Semiconductor. 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 CY stock valuation model: a) initial revenue growth rate of 17.8% 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 8.4%, whose default value for CY is calculated based on our internal credit rating of Cypress Semiconductor, 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 Cypress Semiconductor.
    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 CY stock the variable cost ratio is equal to 121%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for CY 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 Cypress Semiconductor.

Corporate tax rate of 27% is the nominal tax rate for Cypress Semiconductor. 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 CY 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 CY are equal to 31.6%.

Life of production assets of 10.9 years is the average useful life of capital assets used in Cypress Semiconductor 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 CY is equal to -8.5%. 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 - $1892 million for Cypress Semiconductor - 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 326.637 million for Cypress Semiconductor 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 Cypress Semiconductor at the current share price and the inputted number of shares is $4.2 billion.


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COMPANY NEWS

▶ Semiconductor Stocks Could Surge Even Higher   [Jun-07-17 03:10PM  Investopedia]
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▶ Cypress Announces Quarterly Cash Dividend   [May-23-17 04:15PM  PR Newswire]
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▶ Cypress Semiconductor Engineers Another Beat   [Apr-29-17 09:00AM  Motley Fool]
▶ Cramer: These Are Hard Times for Hardware   [Apr-28-17 07:01PM  TheStreet.com]
▶ Cypress reports 1Q loss   [Apr-27-17 06:18PM  Associated Press]
▶ Behind Cypresss Product Strategy for NOR Flash   [Apr-17-17 09:05AM  Market Realist]
▶ Cypress USB-C in 2H17: Key Drivers   [Apr-14-17 10:35AM  Market Realist]
▶ Whats Going On with Cypress Management?   [07:35AM  Market Realist]
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Stock chart of CY Financial statements of CY Annual reports of CY
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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