Intrinsic value of JA Solar Holdings ADR - JASO

Previous Close

$7.45

  Intrinsic Value

$33.89

stock screener

  Rating & Target

str. buy

+355%

Previous close

$7.45

 
Intrinsic value

$33.89

 
Up/down potential

+355%

 
Rating

str. buy

We calculate the intrinsic value of JASO 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 0.4

 

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, %
  16.35
  44.70
  40.73
  37.16
  33.94
  31.05
  28.44
  26.10
  23.99
  22.09
  20.38
  18.84
  17.46
  16.21
  15.09
  14.08
  13.17
  12.36
  11.62
  10.96
  10.36
  9.83
  9.34
  8.91
  8.52
  8.17
  7.85
  7.57
  7.31
  7.08
  6.87
Revenue, $m
  2,277
  3,295
  4,637
  6,360
  8,518
  11,163
  14,338
  18,080
  22,417
  27,369
  32,947
  39,155
  45,990
  53,447
  61,512
  70,175
  79,419
  89,233
  99,602
  110,517
  121,970
  133,956
  146,473
  159,523
  173,112
  187,249
  201,948
  217,226
  233,102
  249,600
  266,747
Variable operating expenses, $m
 
  3,018
  4,247
  5,825
  7,803
  10,225
  13,134
  16,561
  20,534
  25,070
  30,179
  35,866
  42,127
  48,957
  56,345
  64,280
  72,748
  81,737
  91,236
  101,234
  111,725
  122,703
  134,169
  146,123
  158,570
  171,520
  184,985
  198,979
  213,521
  228,634
  244,341
Fixed operating expenses, $m
 
  42
  43
  44
  45
  46
  48
  49
  50
  51
  52
  54
  55
  57
  58
  59
  61
  62
  64
  66
  67
  69
  71
  72
  74
  76
  78
  80
  82
  84
  86
Total operating expenses, $m
  2,125
  3,060
  4,290
  5,869
  7,848
  10,271
  13,182
  16,610
  20,584
  25,121
  30,231
  35,920
  42,182
  49,014
  56,403
  64,339
  72,809
  81,799
  91,300
  101,300
  111,792
  122,772
  134,240
  146,195
  158,644
  171,596
  185,063
  199,059
  213,603
  228,718
  244,427
Operating income, $m
  152
  235
  346
  490
  670
  891
  1,157
  1,470
  1,833
  2,248
  2,715
  3,235
  3,808
  4,433
  5,109
  5,835
  6,610
  7,433
  8,303
  9,218
  10,178
  11,183
  12,233
  13,328
  14,467
  15,653
  16,886
  18,167
  19,499
  20,883
  22,321
EBITDA, $m
  284
  424
  613
  856
  1,160
  1,534
  1,982
  2,510
  3,123
  3,823
  4,611
  5,488
  6,455
  7,509
  8,649
  9,874
  11,181
  12,568
  14,034
  15,578
  17,197
  18,892
  20,662
  22,508
  24,429
  26,429
  28,507
  30,668
  32,913
  35,246
  37,671
Interest expense (income), $m
  42
  27
  62
  107
  165
  237
  326
  433
  559
  705
  872
  1,059
  1,268
  1,498
  1,749
  2,021
  2,312
  2,623
  2,954
  3,302
  3,670
  4,055
  4,459
  4,880
  5,319
  5,776
  6,252
  6,747
  7,261
  7,795
  8,350
Earnings before tax, $m
  122
  207
  285
  383
  506
  654
  830
  1,037
  1,274
  1,543
  1,843
  2,176
  2,540
  2,935
  3,360
  3,815
  4,298
  4,810
  5,349
  5,915
  6,509
  7,128
  7,775
  8,448
  9,148
  9,877
  10,634
  11,420
  12,238
  13,088
  13,971
Tax expense, $m
  18
  56
  77
  103
  136
  177
  224
  280
  344
  417
  498
  587
  686
  792
  907
  1,030
  1,161
  1,299
  1,444
  1,597
  1,757
  1,925
  2,099
  2,281
  2,470
  2,667
  2,871
  3,084
  3,304
  3,534
  3,772
Net income, $m
  99
  151
  208
  280
  369
  477
  606
  757
  930
  1,126
  1,346
  1,588
  1,854
  2,142
  2,453
  2,785
  3,138
  3,511
  3,905
  4,318
  4,751
  5,204
  5,675
  6,167
  6,678
  7,210
  7,763
  8,337
  8,934
  9,554
  10,199

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  372
  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
  2,753
  3,446
  4,850
  6,652
  8,910
  11,677
  14,998
  18,912
  23,449
  28,628
  34,463
  40,957
  48,107
  55,906
  64,343
  73,404
  83,075
  93,340
  104,186
  115,604
  127,584
  140,121
  153,214
  166,865
  181,079
  195,867
  211,243
  227,224
  243,830
  261,088
  279,025
Adjusted assets (=assets-cash), $m
  2,381
  3,446
  4,850
  6,652
  8,910
  11,677
  14,998
  18,912
  23,449
  28,628
  34,463
  40,957
  48,107
  55,906
  64,343
  73,404
  83,075
  93,340
  104,186
  115,604
  127,584
  140,121
  153,214
  166,865
  181,079
  195,867
  211,243
  227,224
  243,830
  261,088
  279,025
Revenue / Adjusted assets
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
  0.956
Average production assets, $m
  696
  1,005
  1,414
  1,940
  2,598
  3,405
  4,373
  5,514
  6,837
  8,347
  10,049
  11,942
  14,027
  16,301
  18,761
  21,403
  24,223
  27,216
  30,379
  33,708
  37,201
  40,857
  44,674
  48,654
  52,799
  57,111
  61,594
  66,254
  71,096
  76,128
  81,358
Working capital, $m
  233
  517
  728
  998
  1,337
  1,753
  2,251
  2,839
  3,519
  4,297
  5,173
  6,147
  7,220
  8,391
  9,657
  11,017
  12,469
  14,010
  15,638
  17,351
  19,149
  21,031
  22,996
  25,045
  27,179
  29,398
  31,706
  34,104
  36,597
  39,187
  41,879
Total debt, $m
  888
  1,162
  2,014
  3,108
  4,479
  6,158
  8,174
  10,550
  13,303
  16,447
  19,989
  23,931
  28,271
  33,005
  38,126
  43,626
  49,496
  55,727
  62,311
  69,242
  76,513
  84,124
  92,071
  100,357
  108,985
  117,961
  127,295
  136,995
  147,075
  157,550
  168,438
Total liabilities, $m
  1,819
  2,092
  2,944
  4,038
  5,409
  7,088
  9,104
  11,480
  14,233
  17,377
  20,919
  24,861
  29,201
  33,935
  39,056
  44,556
  50,426
  56,657
  63,241
  70,172
  77,443
  85,054
  93,001
  101,287
  109,915
  118,891
  128,225
  137,925
  148,005
  158,480
  169,368
Total equity, $m
  935
  1,354
  1,906
  2,614
  3,502
  4,589
  5,894
  7,432
  9,215
  11,251
  13,544
  16,096
  18,906
  21,971
  25,287
  28,848
  32,648
  36,682
  40,945
  45,432
  50,140
  55,068
  60,213
  65,578
  71,164
  76,976
  83,019
  89,299
  95,825
  102,608
  109,657
Total liabilities and equity, $m
  2,754
  3,446
  4,850
  6,652
  8,911
  11,677
  14,998
  18,912
  23,448
  28,628
  34,463
  40,957
  48,107
  55,906
  64,343
  73,404
  83,074
  93,339
  104,186
  115,604
  127,583
  140,122
  153,214
  166,865
  181,079
  195,867
  211,244
  227,224
  243,830
  261,088
  279,025
Debt-to-equity ratio
  0.950
  0.860
  1.060
  1.190
  1.280
  1.340
  1.390
  1.420
  1.440
  1.460
  1.480
  1.490
  1.500
  1.500
  1.510
  1.510
  1.520
  1.520
  1.520
  1.520
  1.530
  1.530
  1.530
  1.530
  1.530
  1.530
  1.530
  1.530
  1.530
  1.540
  1.540
Adjusted equity ratio
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  99
  151
  208
  280
  369
  477
  606
  757
  930
  1,126
  1,346
  1,588
  1,854
  2,142
  2,453
  2,785
  3,138
  3,511
  3,905
  4,318
  4,751
  5,204
  5,675
  6,167
  6,678
  7,210
  7,763
  8,337
  8,934
  9,554
  10,199
Depreciation, amort., depletion, $m
  132
  190
  267
  366
  490
  642
  825
  1,040
  1,290
  1,575
  1,896
  2,253
  2,647
  3,076
  3,540
  4,038
  4,570
  5,135
  5,732
  6,360
  7,019
  7,709
  8,429
  9,180
  9,962
  10,776
  11,622
  12,501
  13,414
  14,364
  15,351
Funds from operations, $m
  31
  341
  475
  646
  859
  1,120
  1,431
  1,797
  2,220
  2,701
  3,242
  3,842
  4,501
  5,218
  5,993
  6,823
  7,708
  8,646
  9,637
  10,678
  11,770
  12,912
  14,105
  15,347
  16,640
  17,986
  19,384
  20,838
  22,348
  23,918
  25,549
Change in working capital, $m
  -117
  160
  211
  270
  339
  415
  498
  587
  681
  777
  876
  975
  1,073
  1,171
  1,266
  1,360
  1,451
  1,541
  1,628
  1,714
  1,798
  1,882
  1,965
  2,049
  2,133
  2,220
  2,308
  2,399
  2,493
  2,590
  2,692
Cash from operations, $m
  148
  181
  264
  375
  520
  705
  933
  1,210
  1,539
  1,924
  2,366
  2,867
  3,427
  4,047
  4,726
  5,463
  6,257
  7,106
  8,009
  8,965
  9,972
  11,031
  12,139
  13,298
  14,507
  15,766
  17,076
  18,439
  19,856
  21,327
  22,857
Maintenance CAPEX, $m
  0
  -131
  -190
  -267
  -366
  -490
  -642
  -825
  -1,040
  -1,290
  -1,575
  -1,896
  -2,253
  -2,647
  -3,076
  -3,540
  -4,038
  -4,570
  -5,135
  -5,732
  -6,360
  -7,019
  -7,709
  -8,429
  -9,180
  -9,962
  -10,776
  -11,622
  -12,501
  -13,414
  -14,364
New CAPEX, $m
  -254
  -309
  -409
  -525
  -658
  -807
  -968
  -1,141
  -1,323
  -1,510
  -1,701
  -1,893
  -2,085
  -2,274
  -2,460
  -2,642
  -2,820
  -2,993
  -3,163
  -3,329
  -3,493
  -3,656
  -3,818
  -3,980
  -4,145
  -4,312
  -4,483
  -4,660
  -4,842
  -5,032
  -5,230
Cash from investing activities, $m
  -446
  -440
  -599
  -792
  -1,024
  -1,297
  -1,610
  -1,966
  -2,363
  -2,800
  -3,276
  -3,789
  -4,338
  -4,921
  -5,536
  -6,182
  -6,858
  -7,563
  -8,298
  -9,061
  -9,853
  -10,675
  -11,527
  -12,409
  -13,325
  -14,274
  -15,259
  -16,282
  -17,343
  -18,446
  -19,594
Free cash flow, $m
  -298
  -259
  -335
  -417
  -504
  -592
  -678
  -757
  -824
  -877
  -910
  -923
  -911
  -873
  -810
  -719
  -601
  -458
  -289
  -96
  119
  356
  613
  889
  1,182
  1,492
  1,818
  2,158
  2,513
  2,881
  3,263
Issuance/(repayment) of debt, $m
  177
  646
  852
  1,094
  1,371
  1,679
  2,016
  2,376
  2,754
  3,144
  3,542
  3,942
  4,340
  4,734
  5,121
  5,500
  5,870
  6,231
  6,584
  6,930
  7,272
  7,610
  7,947
  8,286
  8,628
  8,976
  9,333
  9,700
  10,080
  10,475
  10,887
Issuance/(repurchase) of shares, $m
  0
  268
  344
  428
  518
  610
  699
  781
  853
  909
  947
  964
  956
  923
  863
  776
  663
  523
  358
  169
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  247
  914
  1,196
  1,522
  1,889
  2,289
  2,715
  3,157
  3,607
  4,053
  4,489
  4,906
  5,296
  5,657
  5,984
  6,276
  6,533
  6,754
  6,942
  7,099
  7,272
  7,610
  7,947
  8,286
  8,628
  8,976
  9,333
  9,700
  10,080
  10,475
  10,887
Total cash flow (excl. dividends), $m
  -45
  655
  861
  1,105
  1,385
  1,697
  2,037
  2,401
  2,783
  3,177
  3,579
  3,983
  4,386
  4,784
  5,175
  5,557
  5,931
  6,296
  6,653
  7,003
  7,391
  7,966
  8,560
  9,175
  9,810
  10,468
  11,151
  11,858
  12,593
  13,356
  14,151
Retained Cash Flow (-), $m
  -93
  -419
  -552
  -708
  -887
  -1,087
  -1,305
  -1,538
  -1,783
  -2,036
  -2,293
  -2,552
  -2,810
  -3,065
  -3,316
  -3,561
  -3,800
  -4,034
  -4,263
  -4,487
  -4,708
  -4,927
  -5,145
  -5,365
  -5,586
  -5,812
  -6,043
  -6,280
  -6,526
  -6,782
  -7,049
Prev. year cash balance 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
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
 
  235
  309
  397
  498
  610
  732
  862
  1,000
  1,141
  1,286
  1,431
  1,576
  1,719
  1,859
  1,997
  2,131
  2,262
  2,390
  2,516
  2,683
  3,039
  3,415
  3,810
  4,224
  4,657
  5,108
  5,578
  6,066
  6,574
  7,102
Discount rate, %
 
  4.80
  5.04
  5.29
  5.56
  5.83
  6.13
  6.43
  6.75
  7.09
  7.45
  7.82
  8.21
  8.62
  9.05
  9.50
  9.98
  10.48
  11.00
  11.55
  12.13
  12.74
  13.37
  14.04
  14.74
  15.48
  16.25
  17.07
  17.92
  18.82
  19.76
PV of cash for distribution, $m
 
  224
  280
  340
  401
  459
  512
  557
  593
  616
  627
  625
  611
  587
  553
  511
  465
  416
  365
  315
  272
  245
  216
  186
  156
  127
  102
  79
  60
  44
  32
Current shareholders' claim on cash, %
  100
  70.9
  52.1
  39.4
  30.7
  24.6
  20.2
  17.0
  14.6
  12.8
  11.4
  10.4
  9.6
  8.9
  8.5
  8.1
  7.8
  7.7
  7.6
  7.5
  7.5
  7.5
  7.5
  7.5
  7.5
  7.5
  7.5
  7.5
  7.5
  7.5
  7.5

JA Solar Holdings Co., Ltd. is a holding company. The Company designs, develops, manufactures and sells solar power products that convert sunlight into electricity for a range of uses. The Company is engaged in manufacturing and selling solar modules, as well as silicon wafer manufacturing. The Company operates through two segments, including manufacturing and solar projects. The manufacturing segment includes design, development and manufacture of photovoltaic (PV) products. The solar projects segment includes downstream solar projects, which are involved in electricity generation. The Company's principal products consist of both monocrystalline and multicrystalline solar cells and solar modules. The Company sells its products primarily under JA Solar brand name, and also produces original equipment for manufacturers or customers. The Company is also engaged in the provision of solar product processing services and project development services.

FINANCIAL RATIOS  of  JA Solar Holdings ADR (JASO)

Valuation Ratios
P/E Ratio 17.9
Price to Sales 0.8
Price to Book 1.9
Price to Tangible Book
Price to Cash Flow 12
Price to Free Cash Flow -16.7
Growth Rates
Sales Growth Rate 16.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 96.9%
Cap. Spend. - 3 Yr. Gr. Rate 35.3%
Financial Strength
Quick Ratio 1
Current Ratio 0.2
LT Debt to Equity 41.8%
Total Debt to Equity 95%
Interest Coverage 4
Management Effectiveness
Return On Assets 5.3%
Ret/ On Assets - 3 Yr. Avg. 5.2%
Return On Total Capital 5.9%
Ret/ On T. Cap. - 3 Yr. Avg. 5.6%
Return On Equity 11.1%
Return On Equity - 3 Yr. Avg. 10.2%
Asset Turnover 0.9
Profitability Ratios
Gross Margin 14.6%
Gross Margin - 3 Yr. Avg. 15.7%
EBITDA Margin 13%
EBITDA Margin - 3 Yr. Avg. 13.2%
Operating Margin 6.7%
Oper. Margin - 3 Yr. Avg. 6.3%
Pre-Tax Margin 5.4%
Pre-Tax Margin - 3 Yr. Avg. 5.2%
Net Profit Margin 4.3%
Net Profit Margin - 3 Yr. Avg. 4.2%
Effective Tax Rate 14.8%
Eff/ Tax Rate - 3 Yr. Avg. 16.2%
Payout Ratio 0%

JASO stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the JASO stock intrinsic value calculation we used $2277 million for the last fiscal year's total revenue generated by JA Solar Holdings ADR. The default revenue input number comes from 2016 income statement of JA Solar Holdings ADR. 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 JASO stock valuation model: a) initial revenue growth rate of 44.7% 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 4.8%, whose default value for JASO is calculated based on our internal credit rating of JA Solar Holdings ADR, 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 JA Solar Holdings ADR.
    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 JASO stock the variable cost ratio is equal to 91.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $41 million in the base year in the intrinsic value calculation for JASO 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 5.3% for JA Solar Holdings ADR.

Corporate tax rate of 27% is the nominal tax rate for JA Solar Holdings ADR. 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 JASO 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 JASO are equal to 30.5%.

Life of production assets of 5.3 years is the average useful life of capital assets used in JA Solar Holdings ADR 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 JASO is equal to 15.7%. 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 - $935 million for JA Solar Holdings ADR - 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 47.57 million for JA Solar Holdings ADR 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 JA Solar Holdings ADR at the current share price and the inputted number of shares is $0.4 billion.

RELATED COMPANIES Price Int.Val. Rating
JKS JinkoSolar Hol 27.17 39.97  str.buy
CSIQ Canadian Solar 17.79 3.79  str.sell
SPWR SunPower 7.96 1.81  str.sell
HQCL Hanwha Q CELLS 7.91 12.18  str.buy
SOL ReneSola ADR 3.15 0.43  str.sell

COMPANY NEWS

▶ JA Solar To Take Itself Private In Deal Valued At $362 Million   [Nov-17-17 05:32PM  Investor's Business Daily]
▶ Why JA Solar's Shares Plunged 15% Today   [01:49PM  Motley Fool]
▶ JA Solar Stock Sinks on Q3 Earnings Miss   [12:32PM  InvestorPlace]
▶ JA Solar posts 3Q profit   [07:06AM  Associated Press]
▶ Cisco Leads These Four Top Stocks Just Below Buys With Earnings Due   [Nov-14-17 09:34AM  Investor's Business Daily]
▶ Top 10 Stocks Under $20   [Oct-19-17 02:40PM  Zacks]
▶ 5 of the Best Stocks Under $10 for 2017   [Oct-05-17 01:57PM  Zacks]
▶ [$$] Will New Tariffs Dim the Solar-Power Boom?   [Sep-30-17 12:49AM  Barrons.com]
▶ New Strong Buy Stocks for September 26th   [Sep-26-17 08:33AM  Zacks]
▶ Top 10 Stocks Under $20   [Sep-21-17 01:41PM  Zacks]
▶ Why China Is Crushing the U.S. in Solar Energy   [Sep-17-17 07:02AM  Motley Fool]
▶ New Strong Buy Stocks for September 12th   [Sep-12-17 08:29AM  Zacks]
▶ 3 Strong Buy Stocks Hitting New Highs Right Now   [Sep-08-17 01:30PM  Zacks]
▶ Alternative Energy Stock Outlook - August 2017   [Aug-24-17 03:00PM  Zacks]
▶ JA Solar posts 2Q profit   [Aug-22-17 10:10PM  Associated Press]
▶ Last Week in Solar   [Jul-17-17 10:37AM  Motley Fool]
▶ JA Solar Announces Results of 2017 Annual General Meeting   [Jul-03-17 12:30PM  GlobeNewswire]
▶ JA Solar Establishes New Subsidiary in Brazil   [Jun-13-17 07:00AM  PR Newswire]
▶ JA Solar Establishes New Subsidiary in Brazil   [Jun-12-17 07:00PM  PR Newswire]
▶ This Week in Solar   [Jun-09-17 04:41PM  Motley Fool]
▶ JA Solar Receives Takeover Bid From CEO Baofang Jin   [Jun-06-17 08:23AM  TheStreet.com]
▶ This Week in Solar   [May-30-17 08:05AM  Motley Fool]
Financial statements of JASO
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.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.