Intrinsic value of Fabrinet - FN

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$36.70

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$36.70

 
Intrinsic value

$179.31

 
Up/down potential

+389%

 
Rating

str. buy

 
Value-price divergence* premium content

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

We calculate the intrinsic value of FN 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 1.3

 

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, %
  26.23
  46.20
  42.08
  38.37
  35.03
  32.03
  29.33
  26.90
  24.71
  22.74
  20.96
  19.37
  17.93
  16.64
  15.47
  14.43
  13.48
  12.63
  11.87
  11.18
  10.57
  10.01
  9.51
  9.06
  8.65
  8.29
  7.96
  7.66
  7.40
  7.16
  6.94
Revenue, $m
  977
  1,428
  2,029
  2,808
  3,792
  5,007
  6,475
  8,216
  10,246
  12,576
  15,212
  18,158
  21,414
  24,976
  28,840
  33,001
  37,450
  42,182
  47,189
  52,466
  58,010
  63,816
  69,884
  76,213
  82,807
  89,669
  96,804
  104,221
  111,929
  119,939
  128,264
Variable operating expenses, $m
 
  1,274
  1,810
  2,505
  3,382
  4,466
  5,776
  7,329
  9,140
  11,218
  13,569
  16,197
  19,101
  22,279
  25,726
  29,437
  33,405
  37,626
  42,093
  46,800
  51,745
  56,924
  62,336
  67,982
  73,864
  79,984
  86,349
  92,965
  99,841
  106,986
  114,411
Fixed operating expenses, $m
 
  38
  39
  40
  41
  42
  43
  44
  45
  46
  47
  49
  50
  51
  52
  54
  55
  56
  58
  59
  61
  62
  64
  65
  67
  69
  70
  72
  74
  76
  78
Total operating expenses, $m
  907
  1,312
  1,849
  2,545
  3,423
  4,508
  5,819
  7,373
  9,185
  11,264
  13,616
  16,246
  19,151
  22,330
  25,778
  29,491
  33,460
  37,682
  42,151
  46,859
  51,806
  56,986
  62,400
  68,047
  73,931
  80,053
  86,419
  93,037
  99,915
  107,062
  114,489
Operating income, $m
  70
  116
  180
  263
  369
  499
  656
  843
  1,062
  1,312
  1,596
  1,913
  2,263
  2,646
  3,062
  3,510
  3,990
  4,499
  5,039
  5,607
  6,204
  6,830
  7,484
  8,166
  8,876
  9,616
  10,385
  11,184
  12,014
  12,878
  13,775
EBITDA, $m
  87
  137
  210
  304
  424
  572
  751
  963
  1,211
  1,496
  1,818
  2,178
  2,576
  3,011
  3,484
  3,992
  4,536
  5,115
  5,728
  6,373
  7,051
  7,762
  8,504
  9,278
  10,085
  10,925
  11,798
  12,705
  13,649
  14,629
  15,647
Interest expense (income), $m
  1
  1
  6
  12
  19
  29
  41
  56
  73
  93
  116
  142
  172
  204
  239
  278
  319
  363
  410
  460
  512
  567
  625
  685
  748
  813
  881
  952
  1,026
  1,102
  1,181
Earnings before tax, $m
  68
  115
  175
  252
  349
  470
  615
  788
  988
  1,219
  1,479
  1,770
  2,091
  2,442
  2,823
  3,233
  3,671
  4,136
  4,629
  5,148
  5,692
  6,263
  6,859
  7,481
  8,129
  8,803
  9,503
  10,232
  10,989
  11,776
  12,593
Tax expense, $m
  6
  31
  47
  68
  94
  127
  166
  213
  267
  329
  399
  478
  565
  659
  762
  873
  991
  1,117
  1,250
  1,390
  1,537
  1,691
  1,852
  2,020
  2,195
  2,377
  2,566
  2,763
  2,967
  3,179
  3,400
Net income, $m
  62
  84
  127
  184
  255
  343
  449
  575
  722
  890
  1,080
  1,292
  1,527
  1,783
  2,061
  2,360
  2,680
  3,019
  3,379
  3,758
  4,155
  4,572
  5,007
  5,461
  5,934
  6,426
  6,937
  7,469
  8,022
  8,596
  9,193

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  285
  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
  856
  835
  1,186
  1,641
  2,216
  2,926
  3,784
  4,802
  5,989
  7,350
  8,891
  10,613
  12,515
  14,597
  16,856
  19,287
  21,888
  24,653
  27,580
  30,664
  33,904
  37,298
  40,844
  44,543
  48,397
  52,407
  56,578
  60,912
  65,417
  70,099
  74,964
Adjusted assets (=assets-cash), $m
  571
  835
  1,186
  1,641
  2,216
  2,926
  3,784
  4,802
  5,989
  7,350
  8,891
  10,613
  12,515
  14,597
  16,856
  19,287
  21,888
  24,653
  27,580
  30,664
  33,904
  37,298
  40,844
  44,543
  48,397
  52,407
  56,578
  60,912
  65,417
  70,099
  74,964
Revenue / Adjusted assets
  1.711
  1.710
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
  1.711
Average production assets, $m
  71
  104
  148
  205
  277
  365
  473
  600
  748
  918
  1,110
  1,326
  1,563
  1,823
  2,105
  2,409
  2,734
  3,079
  3,445
  3,830
  4,235
  4,659
  5,102
  5,564
  6,045
  6,546
  7,067
  7,608
  8,171
  8,756
  9,363
Working capital, $m
  417
  230
  327
  452
  611
  806
  1,042
  1,323
  1,650
  2,025
  2,449
  2,923
  3,448
  4,021
  4,643
  5,313
  6,029
  6,791
  7,597
  8,447
  9,340
  10,274
  11,251
  12,270
  13,332
  14,437
  15,585
  16,780
  18,021
  19,310
  20,650
Total debt, $m
  61
  164
  334
  555
  834
  1,178
  1,594
  2,088
  2,663
  3,324
  4,071
  4,906
  5,829
  6,839
  7,934
  9,113
  10,375
  11,716
  13,135
  14,631
  16,202
  17,848
  19,568
  21,362
  23,231
  25,176
  27,199
  29,302
  31,486
  33,757
  36,117
Total liabilities, $m
  301
  405
  575
  796
  1,075
  1,419
  1,835
  2,329
  2,904
  3,565
  4,312
  5,147
  6,070
  7,080
  8,175
  9,354
  10,616
  11,957
  13,376
  14,872
  16,443
  18,089
  19,809
  21,603
  23,472
  25,417
  27,440
  29,543
  31,727
  33,998
  36,358
Total equity, $m
  554
  430
  611
  845
  1,141
  1,507
  1,949
  2,473
  3,084
  3,785
  4,579
  5,465
  6,445
  7,518
  8,681
  9,933
  11,272
  12,696
  14,204
  15,792
  17,461
  19,208
  21,035
  22,940
  24,924
  26,990
  29,137
  31,370
  33,690
  36,101
  38,606
Total liabilities and equity, $m
  855
  835
  1,186
  1,641
  2,216
  2,926
  3,784
  4,802
  5,988
  7,350
  8,891
  10,612
  12,515
  14,598
  16,856
  19,287
  21,888
  24,653
  27,580
  30,664
  33,904
  37,297
  40,844
  44,543
  48,396
  52,407
  56,577
  60,913
  65,417
  70,099
  74,964
Debt-to-equity ratio
  0.110
  0.380
  0.550
  0.660
  0.730
  0.780
  0.820
  0.840
  0.860
  0.880
  0.890
  0.900
  0.900
  0.910
  0.910
  0.920
  0.920
  0.920
  0.920
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.940
  0.940
Adjusted equity ratio
  0.483
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515
  0.515

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  62
  84
  127
  184
  255
  343
  449
  575
  722
  890
  1,080
  1,292
  1,527
  1,783
  2,061
  2,360
  2,680
  3,019
  3,379
  3,758
  4,155
  4,572
  5,007
  5,461
  5,934
  6,426
  6,937
  7,469
  8,022
  8,596
  9,193
Depreciation, amort., depletion, $m
  17
  21
  30
  41
  55
  73
  95
  120
  150
  184
  222
  265
  313
  365
  421
  482
  547
  616
  689
  766
  847
  932
  1,020
  1,113
  1,209
  1,309
  1,413
  1,522
  1,634
  1,751
  1,873
Funds from operations, $m
  -1
  105
  157
  225
  310
  416
  544
  695
  871
  1,073
  1,302
  1,557
  1,839
  2,148
  2,482
  2,842
  3,226
  3,635
  4,068
  4,524
  5,002
  5,504
  6,027
  6,574
  7,143
  7,735
  8,351
  8,991
  9,656
  10,347
  11,066
Change in working capital, $m
  -48
  73
  97
  125
  158
  196
  236
  280
  327
  375
  424
  474
  524
  574
  622
  670
  716
  762
  806
  850
  892
  935
  977
  1,019
  1,062
  1,105
  1,149
  1,194
  1,241
  1,290
  1,340
Cash from operations, $m
  47
  -38
  60
  99
  152
  220
  307
  415
  544
  698
  878
  1,083
  1,315
  1,574
  1,860
  2,172
  2,510
  2,873
  3,262
  3,674
  4,110
  4,569
  5,051
  5,555
  6,081
  6,630
  7,202
  7,797
  8,415
  9,058
  9,726
Maintenance CAPEX, $m
  0
  -14
  -21
  -30
  -41
  -55
  -73
  -95
  -120
  -150
  -184
  -222
  -265
  -313
  -365
  -421
  -482
  -547
  -616
  -689
  -766
  -847
  -932
  -1,020
  -1,113
  -1,209
  -1,309
  -1,413
  -1,522
  -1,634
  -1,751
New CAPEX, $m
  -41
  -33
  -44
  -57
  -72
  -89
  -107
  -127
  -148
  -170
  -192
  -215
  -238
  -260
  -282
  -304
  -325
  -345
  -366
  -385
  -405
  -424
  -443
  -462
  -481
  -501
  -521
  -541
  -563
  -585
  -608
Cash from investing activities, $m
  -40
  -47
  -65
  -87
  -113
  -144
  -180
  -222
  -268
  -320
  -376
  -437
  -503
  -573
  -647
  -725
  -807
  -892
  -982
  -1,074
  -1,171
  -1,271
  -1,375
  -1,482
  -1,594
  -1,710
  -1,830
  -1,954
  -2,085
  -2,219
  -2,359
Free cash flow, $m
  7
  -85
  -4
  13
  39
  76
  127
  193
  276
  379
  501
  646
  812
  1,001
  1,213
  1,447
  1,703
  1,981
  2,280
  2,600
  2,939
  3,298
  3,676
  4,072
  4,487
  4,920
  5,372
  5,842
  6,331
  6,839
  7,367
Issuance/(repayment) of debt, $m
  21
  128
  170
  221
  279
  344
  416
  494
  575
  660
  747
  835
  923
  1,010
  1,095
  1,179
  1,261
  1,341
  1,419
  1,496
  1,571
  1,646
  1,720
  1,794
  1,869
  1,945
  2,023
  2,102
  2,185
  2,270
  2,360
Issuance/(repurchase) of shares, $m
  5
  0
  15
  1
  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  
  23
  128
  185
  222
  279
  344
  416
  494
  575
  660
  747
  835
  923
  1,010
  1,095
  1,179
  1,261
  1,341
  1,419
  1,496
  1,571
  1,646
  1,720
  1,794
  1,869
  1,945
  2,023
  2,102
  2,185
  2,270
  2,360
Total cash flow (excl. dividends), $m
  30
  43
  166
  234
  318
  421
  543
  687
  852
  1,039
  1,249
  1,481
  1,735
  2,011
  2,308
  2,626
  2,965
  3,323
  3,700
  4,096
  4,511
  4,944
  5,396
  5,866
  6,356
  6,865
  7,395
  7,944
  8,516
  9,109
  9,726
Retained Cash Flow (-), $m
  -75
  -136
  -181
  -234
  -296
  -366
  -442
  -524
  -611
  -701
  -793
  -887
  -980
  -1,072
  -1,163
  -1,252
  -1,339
  -1,424
  -1,507
  -1,589
  -1,669
  -1,748
  -1,826
  -1,905
  -1,985
  -2,065
  -2,148
  -2,232
  -2,320
  -2,411
  -2,506
Prev. year cash balance distribution, $m
 
  260
  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
 
  167
  0
  0
  22
  55
  101
  162
  241
  338
  455
  594
  755
  939
  1,145
  1,374
  1,625
  1,898
  2,192
  2,507
  2,842
  3,196
  3,569
  3,961
  4,372
  4,800
  5,247
  5,712
  6,196
  6,698
  7,221
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
 
  160
  0
  0
  18
  43
  73
  110
  150
  194
  239
  282
  322
  357
  384
  403
  413
  413
  404
  386
  361
  331
  296
  260
  223
  187
  153
  123
  96
  73
  54
Current shareholders' claim on cash, %
  100
  100.0
  98.6
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5
  98.5

Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of optical communication components, modules and sub-systems, industrial lasers, medical devices, and sensors. It offers a range of optical and electro-mechanical capabilities across the manufacturing process, including process design and engineering, supply chain management, manufacturing, printed circuit board assembly, packaging, integration, final assembly, and test. The company’s products comprise switching products, such as reconfigurable optical add-drop multiplexers, optical amplifiers, modulators, and other optical components and modules that enable network managers to route voice, video, and data communications traffic through fiber optic cables at various wavelengths speeds, and over various distances; tunable lasers, transceivers, and transponders; and active optical cables, which provide high-speed interconnect capabilities for data centers and computing clusters, as well as Infiniband, Ethernet, fiber channel, and optical backplane connectivity. It also offers solid state, diode, gas, and fiber lasers used across various industries, including semiconductor processing, biotechnology and medical device, metrology, and material processing; and sensors, such as differential pressure, micro-gyro, fuel, and other sensors used in automobiles, as well as non-contact temperature measurement sensors for the medical industry. In addition, the company designs and fabricates application-specific crystals, lenses, prisms, mirrors, and laser components and substrates, as well as other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products. It operates in North America, the Asia-Pacific, and Europe. The company was incorporated in 1999 and is based in George Town, the Cayman Islands.

FINANCIAL RATIOS  of  Fabrinet (FN)

Valuation Ratios
P/E Ratio 21.4
Price to Sales 1.4
Price to Book 2.4
Price to Tangible Book
Price to Cash Flow 28.2
Price to Free Cash Flow 221.2
Growth Rates
Sales Growth Rate 26.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -21.2%
Cap. Spend. - 3 Yr. Gr. Rate 30.1%
Financial Strength
Quick Ratio 11
Current Ratio 0
LT Debt to Equity 6.5%
Total Debt to Equity 11%
Interest Coverage 69
Management Effectiveness
Return On Assets 8.2%
Ret/ On Assets - 3 Yr. Avg. 11.2%
Return On Total Capital 10.9%
Ret/ On T. Cap. - 3 Yr. Avg. 14.4%
Return On Equity 12%
Return On Equity - 3 Yr. Avg. 15.4%
Asset Turnover 1.3
Profitability Ratios
Gross Margin 12.3%
Gross Margin - 3 Yr. Avg. 11.5%
EBITDA Margin 8.8%
EBITDA Margin - 3 Yr. Avg. 10.8%
Operating Margin 7.2%
Oper. Margin - 3 Yr. Avg. 8.9%
Pre-Tax Margin 7%
Pre-Tax Margin - 3 Yr. Avg. 9%
Net Profit Margin 6.3%
Net Profit Margin - 3 Yr. Avg. 8.5%
Effective Tax Rate 8.8%
Eff/ Tax Rate - 3 Yr. Avg. 6.1%
Payout Ratio 0%

FN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the FN stock intrinsic value calculation we used $977 million for the last fiscal year's total revenue generated by Fabrinet. The default revenue input number comes from 2016 income statement of Fabrinet. 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 FN stock valuation model: a) initial revenue growth rate of 46.2% 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 FN is calculated based on our internal credit rating of Fabrinet, 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 Fabrinet.
    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 FN stock the variable cost ratio is equal to 89.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $37 million in the base year in the intrinsic value calculation for FN 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 Fabrinet.

Corporate tax rate of 27% is the nominal tax rate for Fabrinet. 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 FN 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 FN are equal to 7.3%.

Life of production assets of 4.2 years is the average useful life of capital assets used in Fabrinet 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 FN is equal to 16.1%. 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 - $554 million for Fabrinet - 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 36.427 million for Fabrinet 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 Fabrinet at the current share price and the inputted number of shares is $1.3 billion.


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COMPANY NEWS

▶ Fabrinet to Present at Upcoming Investor Conferences   [May-16-17 08:30AM  Business Wire]
▶ Why Fabrinet Stock Popped Today   [May-09-17 07:45PM  Motley Fool]
▶ Fabrinet misses 3Q profit forecasts   [May-08-17 05:40PM  Associated Press]
▶ ETFs with exposure to Fabrinet : April 27, 2017   [Apr-27-17 03:59PM  Capital Cube]
▶ Fabrinet Gets Rating Upgrade As Builds Right Side Of New Base   [Mar-28-17 11:40AM  Investor's Business Daily]
▶ Panic Selling In Oclaro Creates An Opportunity   [Mar-02-17 05:13AM  Forbes]
▶ Scott Black's Top 3 New Holdings for the 4th Quarter   [Feb-20-17 11:59AM  GuruFocus.com]
▶ ETFs with exposure to Fabrinet : February 14, 2017   [Feb-14-17 04:18PM  Capital Cube]
▶ Lumentum, Acacia, Finisar, Fabrinet Lead Fiber-Optics Stock Gains   [Feb-13-17 04:22PM  Investor's Business Daily]
▶ Market Higher As 4 Key Steel, Technology Stocks Top Buy Points   [03:04PM  Investor's Business Daily]
▶ After-hours buzz: FOXA, GPS, FMC & more   [Feb-06-17 05:54PM  at CNBC]
▶ [$$] User's Manual for a Mixed-Up Market   [Jan-21-17 12:01AM  at Barrons.com]
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▶ Big Data + Artificial Intelligence = Boom   [Oct-06-16 10:02AM  at Forbes]
Stock chart of FN Financial statements of FN Annual reports of FN
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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