Intrinsic value of Juniper Networks - JNPR

Previous Close

$27.78

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$27.78

 
Intrinsic value

$49.57

 
Up/down potential

+78%

 
Rating

str. buy

 
Value-price divergence* premium content

Premium access subscription - $499/yr

please register and log in before paying

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

We calculate the intrinsic value of JNPR 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 10.7

 

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, %
  2.72
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
  5.00
Revenue, $m
  4,990
  5,240
  5,501
  5,777
  6,065
  6,369
  6,687
  7,021
  7,373
  7,741
  8,128
  8,535
  8,961
  9,409
  9,880
  10,374
  10,893
  11,437
  12,009
  12,609
  13,240
  13,902
  14,597
  15,327
  16,093
  16,898
  17,743
  18,630
  19,561
  20,540
  21,566
Variable operating expenses, $m
 
  4,239
  4,436
  4,642
  4,859
  5,086
  5,325
  5,576
  5,839
  6,116
  6,406
  6,403
  6,723
  7,059
  7,412
  7,783
  8,172
  8,581
  9,010
  9,460
  9,933
  10,430
  10,951
  11,499
  12,074
  12,677
  13,311
  13,977
  14,676
  15,409
  16,180
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
  4,100
  4,239
  4,436
  4,642
  4,859
  5,086
  5,325
  5,576
  5,839
  6,116
  6,406
  6,403
  6,723
  7,059
  7,412
  7,783
  8,172
  8,581
  9,010
  9,460
  9,933
  10,430
  10,951
  11,499
  12,074
  12,677
  13,311
  13,977
  14,676
  15,409
  16,180
Operating income, $m
  890
  1,000
  1,066
  1,135
  1,207
  1,282
  1,362
  1,445
  1,533
  1,625
  1,722
  2,132
  2,238
  2,350
  2,468
  2,591
  2,721
  2,857
  2,999
  3,149
  3,307
  3,472
  3,646
  3,828
  4,020
  4,220
  4,432
  4,653
  4,886
  5,130
  5,387
EBITDA, $m
  1,097
  1,346
  1,413
  1,483
  1,558
  1,636
  1,717
  1,803
  1,893
  1,988
  2,087
  2,192
  2,301
  2,416
  2,537
  2,664
  2,797
  2,937
  3,084
  3,238
  3,400
  3,570
  3,749
  3,936
  4,133
  4,340
  4,557
  4,784
  5,024
  5,275
  5,538
Interest expense (income), $m
  93
  98
  109
  120
  132
  145
  158
  172
  186
  201
  217
  234
  251
  270
  289
  310
  331
  353
  377
  402
  428
  455
  484
  514
  545
  578
  613
  650
  688
  729
  771
Earnings before tax, $m
  827
  902
  957
  1,014
  1,075
  1,138
  1,204
  1,274
  1,347
  1,424
  1,505
  1,898
  1,987
  2,080
  2,178
  2,281
  2,390
  2,503
  2,622
  2,748
  2,879
  3,017
  3,162
  3,314
  3,474
  3,642
  3,818
  4,003
  4,197
  4,401
  4,616
Tax expense, $m
  234
  244
  258
  274
  290
  307
  325
  344
  364
  384
  406
  512
  536
  562
  588
  616
  645
  676
  708
  742
  777
  815
  854
  895
  938
  983
  1,031
  1,081
  1,133
  1,188
  1,246
Net income, $m
  593
  659
  699
  740
  784
  831
  879
  930
  983
  1,040
  1,098
  1,385
  1,450
  1,519
  1,590
  1,665
  1,744
  1,827
  1,914
  2,006
  2,102
  2,203
  2,308
  2,419
  2,536
  2,659
  2,787
  2,922
  3,064
  3,213
  3,369

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  2,586
  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
  9,657
  7,421
  7,792
  8,182
  8,591
  9,021
  9,472
  9,945
  10,443
  10,965
  11,513
  12,089
  12,693
  13,328
  13,994
  14,694
  15,429
  16,200
  17,010
  17,860
  18,753
  19,691
  20,676
  21,709
  22,795
  23,935
  25,131
  26,388
  27,707
  29,093
  30,547
Adjusted assets (=assets-cash), $m
  7,071
  7,421
  7,792
  8,182
  8,591
  9,021
  9,472
  9,945
  10,443
  10,965
  11,513
  12,089
  12,693
  13,328
  13,994
  14,694
  15,429
  16,200
  17,010
  17,860
  18,753
  19,691
  20,676
  21,709
  22,795
  23,935
  25,131
  26,388
  27,707
  29,093
  30,547
Revenue / Adjusted assets
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
  0.706
Average production assets, $m
  618
  650
  682
  716
  752
  790
  829
  871
  914
  960
  1,008
  1,058
  1,111
  1,167
  1,225
  1,286
  1,351
  1,418
  1,489
  1,564
  1,642
  1,724
  1,810
  1,901
  1,996
  2,095
  2,200
  2,310
  2,426
  2,547
  2,674
Working capital, $m
  2,236
  -367
  -385
  -404
  -425
  -446
  -468
  -492
  -516
  -542
  -569
  -597
  -627
  -659
  -692
  -726
  -762
  -801
  -841
  -883
  -927
  -973
  -1,022
  -1,073
  -1,127
  -1,183
  -1,242
  -1,304
  -1,369
  -1,438
  -1,510
Total debt, $m
  2,134
  2,368
  2,614
  2,873
  3,145
  3,430
  3,729
  4,044
  4,374
  4,721
  5,085
  5,467
  5,868
  6,290
  6,732
  7,197
  7,685
  8,197
  8,735
  9,299
  9,892
  10,515
  11,169
  11,855
  12,576
  13,333
  14,127
  14,962
  15,838
  16,758
  17,723
Total liabilities, $m
  4,694
  4,928
  5,174
  5,433
  5,705
  5,990
  6,289
  6,604
  6,934
  7,281
  7,645
  8,027
  8,428
  8,850
  9,292
  9,757
  10,245
  10,757
  11,295
  11,859
  12,452
  13,075
  13,729
  14,415
  15,136
  15,893
  16,687
  17,522
  18,398
  19,318
  20,283
Total equity, $m
  4,963
  2,494
  2,618
  2,749
  2,887
  3,031
  3,183
  3,342
  3,509
  3,684
  3,868
  4,062
  4,265
  4,478
  4,702
  4,937
  5,184
  5,443
  5,715
  6,001
  6,301
  6,616
  6,947
  7,294
  7,659
  8,042
  8,444
  8,866
  9,310
  9,775
  10,264
Total liabilities and equity, $m
  9,657
  7,422
  7,792
  8,182
  8,592
  9,021
  9,472
  9,946
  10,443
  10,965
  11,513
  12,089
  12,693
  13,328
  13,994
  14,694
  15,429
  16,200
  17,010
  17,860
  18,753
  19,691
  20,676
  21,709
  22,795
  23,935
  25,131
  26,388
  27,708
  29,093
  30,547
Debt-to-equity ratio
  0.430
  0.950
  1.000
  1.050
  1.090
  1.130
  1.170
  1.210
  1.250
  1.280
  1.310
  1.350
  1.380
  1.400
  1.430
  1.460
  1.480
  1.510
  1.530
  1.550
  1.570
  1.590
  1.610
  1.630
  1.640
  1.660
  1.670
  1.690
  1.700
  1.710
  1.730
Adjusted equity ratio
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336
  0.336

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  593
  659
  699
  740
  784
  831
  879
  930
  983
  1,040
  1,098
  1,385
  1,450
  1,519
  1,590
  1,665
  1,744
  1,827
  1,914
  2,006
  2,102
  2,203
  2,308
  2,419
  2,536
  2,659
  2,787
  2,922
  3,064
  3,213
  3,369
Depreciation, amort., depletion, $m
  207
  345
  347
  349
  351
  353
  355
  358
  360
  363
  365
  60
  63
  66
  70
  73
  77
  81
  85
  89
  93
  98
  103
  108
  113
  119
  125
  131
  138
  145
  152
Funds from operations, $m
  1,135
  1,004
  1,046
  1,089
  1,135
  1,184
  1,234
  1,288
  1,344
  1,402
  1,464
  1,445
  1,513
  1,585
  1,660
  1,738
  1,821
  1,908
  1,999
  2,095
  2,195
  2,300
  2,411
  2,527
  2,650
  2,778
  2,912
  3,054
  3,202
  3,358
  3,521
Change in working capital, $m
  29
  -17
  -18
  -19
  -20
  -21
  -22
  -23
  -25
  -26
  -27
  -28
  -30
  -31
  -33
  -35
  -36
  -38
  -40
  -42
  -44
  -46
  -49
  -51
  -54
  -56
  -59
  -62
  -65
  -68
  -72
Cash from operations, $m
  1,106
  1,598
  1,064
  1,109
  1,156
  1,205
  1,257
  1,311
  1,368
  1,428
  1,491
  1,474
  1,543
  1,616
  1,693
  1,773
  1,857
  1,946
  2,039
  2,137
  2,239
  2,347
  2,460
  2,579
  2,703
  2,834
  2,971
  3,116
  3,267
  3,426
  3,593
Maintenance CAPEX, $m
  0
  -35
  -37
  -39
  -41
  -43
  -45
  -47
  -49
  -52
  -55
  -57
  -60
  -63
  -66
  -70
  -73
  -77
  -81
  -85
  -89
  -93
  -98
  -103
  -108
  -113
  -119
  -125
  -131
  -138
  -145
New CAPEX, $m
  -215
  -32
  -32
  -34
  -36
  -38
  -39
  -41
  -44
  -46
  -48
  -50
  -53
  -56
  -58
  -61
  -64
  -68
  -71
  -74
  -78
  -82
  -86
  -91
  -95
  -100
  -105
  -110
  -116
  -121
  -127
Cash from investing activities, $m
  -450
  -67
  -69
  -73
  -77
  -81
  -84
  -88
  -93
  -98
  -103
  -107
  -113
  -119
  -124
  -131
  -137
  -145
  -152
  -159
  -167
  -175
  -184
  -194
  -203
  -213
  -224
  -235
  -247
  -259
  -272
Free cash flow, $m
  656
  1,530
  994
  1,036
  1,079
  1,125
  1,172
  1,222
  1,275
  1,330
  1,389
  1,366
  1,430
  1,497
  1,568
  1,642
  1,720
  1,802
  1,887
  1,978
  2,072
  2,171
  2,276
  2,385
  2,500
  2,621
  2,748
  2,881
  3,020
  3,167
  3,321
Issuance/(repayment) of debt, $m
  179
  234
  246
  259
  272
  285
  299
  314
  330
  347
  364
  382
  401
  421
  442
  465
  488
  512
  538
  565
  593
  623
  654
  686
  721
  757
  795
  834
  876
  920
  966
Issuance/(repurchase) of shares, $m
  -262
  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 from financing (excl. dividends), $m  
  -77
  234
  246
  259
  272
  285
  299
  314
  330
  347
  364
  382
  401
  421
  442
  465
  488
  512
  538
  565
  593
  623
  654
  686
  721
  757
  795
  834
  876
  920
  966
Total cash flow (excl. dividends), $m
  565
  1,764
  1,241
  1,294
  1,351
  1,410
  1,472
  1,537
  1,605
  1,677
  1,753
  1,748
  1,832
  1,919
  2,011
  2,107
  2,208
  2,314
  2,425
  2,542
  2,665
  2,794
  2,929
  3,072
  3,221
  3,378
  3,542
  3,715
  3,897
  4,087
  4,287
Retained Cash Flow (-), $m
  -389
  -117
  -125
  -131
  -137
  -144
  -152
  -159
  -167
  -175
  -184
  -193
  -203
  -213
  -224
  -235
  -247
  -259
  -272
  -286
  -300
  -315
  -331
  -347
  -365
  -383
  -402
  -422
  -443
  -465
  -489
Prev. year cash balance distribution, $m
 
  2,586
  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
 
  4,234
  1,116
  1,164
  1,213
  1,265
  1,320
  1,378
  1,438
  1,502
  1,568
  1,555
  1,629
  1,706
  1,787
  1,872
  1,961
  2,055
  2,153
  2,257
  2,365
  2,479
  2,599
  2,724
  2,856
  2,995
  3,140
  3,293
  3,453
  3,622
  3,798
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
 
  4,059
  1,022
  1,013
  999
  981
  958
  931
  899
  863
  822
  738
  695
  649
  600
  549
  498
  447
  397
  347
  301
  256
  216
  179
  145
  116
  92
  71
  53
  40
  29
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Juniper Networks, Inc. designs, develops, and sells network products and services worldwide. The company offers various routing products, such as ACX series universal access routers to deploy new high-bandwidth services; MX series Ethernet routers that functions as a universal edge platform; PTX series packet transport routers; cloud customer premises equipment; and NorthStar controllers. It also provides switching products, including EX series Ethernet switches to address the access, aggregation, and core layer switching requirements of micro branch, branch office, and campus and data center environments; QFX series of core, spine, and top-of-rack data center switches; and OCX1100, an open networking switch. In addition, the company offers security products comprising SRX series services gateways for the data centers; Branch SRX family that includes SRX300 Series and SRX1500, which provides integrated firewall capabilities; vSRX Virtual Firewall that delivers various features of physical firewalls; Sky Advanced Threat Prevention, a cloud-based service for static and dynamic analysis; and Spotlight Secure Threat Intelligence Platform, a threat intelligence platform that aggregates threat feeds from various sources. Further, it offers Junos OS, a network operating system; Junos Space, a network management platform for creating network management applications that include network director, services activation director, security director, edge services director, service now, and service insight; and Contrail networking and cloud platform solutions. Additionally, the company provides technical support and professional services, as well as education and training programs. It sells its products through direct sales, distributors, value-added resellers, and original equipment manufacturer partners to end-users in the service provider and enterprise markets. Juniper Networks, Inc. was founded in 1996 and is headquartered in Sunnyvale, California.

FINANCIAL RATIOS  of  Juniper Networks (JNPR)

Valuation Ratios
P/E Ratio 17.9
Price to Sales 2.1
Price to Book 2.1
Price to Tangible Book
Price to Cash Flow 9.6
Price to Free Cash Flow 11.9
Growth Rates
Sales Growth Rate 2.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 2.4%
Cap. Spend. - 3 Yr. Gr. Rate -2.2%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 43%
Total Debt to Equity 43%
Interest Coverage 10
Management Effectiveness
Return On Assets 7.2%
Ret/ On Assets - 3 Yr. Avg. 4.6%
Return On Total Capital 8.7%
Ret/ On T. Cap. - 3 Yr. Avg. 4.7%
Return On Equity 12.4%
Return On Equity - 3 Yr. Avg. 6.8%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 62.2%
Gross Margin - 3 Yr. Avg. 62.5%
EBITDA Margin 22.6%
EBITDA Margin - 3 Yr. Avg. 16.2%
Operating Margin 17.8%
Oper. Margin - 3 Yr. Avg. 10.7%
Pre-Tax Margin 16.6%
Pre-Tax Margin - 3 Yr. Avg. 10.8%
Net Profit Margin 11.9%
Net Profit Margin - 3 Yr. Avg. 5.9%
Effective Tax Rate 28.3%
Eff/ Tax Rate - 3 Yr. Avg. -78.2%
Payout Ratio 25.8%

JNPR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the JNPR stock intrinsic value calculation we used $4990 million for the last fiscal year's total revenue generated by Juniper Networks. The default revenue input number comes from 2016 income statement of Juniper Networks. 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 JNPR stock valuation model: a) initial revenue growth rate of 5% 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 JNPR is calculated based on our internal credit rating of Juniper Networks, 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 Juniper Networks.
    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 JNPR stock the variable cost ratio is equal to 81.2%.

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 JNPR 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 4.6% for Juniper Networks.

Corporate tax rate of 27% is the nominal tax rate for Juniper Networks. 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 JNPR 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 JNPR are equal to 12.4%.

Life of production assets of 17.6 years is the average useful life of capital assets used in Juniper Networks 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 JNPR is equal to -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 - $4963 million for Juniper Networks - 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 383.759 million for Juniper Networks 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 Juniper Networks at the current share price and the inputted number of shares is $10.7 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
NOK Nokia ADR 5.22 208.44  str.buy
CSCO Cisco Systems 32.82 42.04  buy
FTNT Fortinet 39.53 45.57  hold
PANW Palo Alto Netw 108.55 12.78  str.sell
EXTR Extreme Networ 7.36 0.04  str.sell
HPE Hewlett Packar 18.14 35.74  str.buy
CIEN Ciena 21.77 53.26  str.buy
FFIV F5 Networks 136.54 149.56  hold

COMPANY NEWS

▶ The 20 highest-paying tech companies in America   [Apr-12-17 08:46AM  Yahoo Finance]
▶ To Buy or Not to Buy? The Juniper Opportunity   [Apr-06-17 12:09PM  Investopedia]
▶ Can Juniper Networks Routing Business Drive 2017 Revenue?   [Mar-20-17 03:05PM  at Market Realist]
▶ Juniper exec jumps back to rival Cisco   [Mar-13-17 06:25PM  at bizjournals.com]
▶ Juniper Networks quietly did another lay off this week   [Mar-09-17 08:23PM  Business Insider]
▶ [$$] Telecom's New Frontier: Connecting Things, Not People   [Mar-04-17 01:11AM  at Barrons.com]
▶ Should You Be Watching Fortinet Too?   [11:36AM  at Market Realist]
▶ Cisco FYQ2 On Tap: Don't Expect Fireworks, Says Drexel   [Feb-15-17 02:13PM  at Barrons.com]
▶ How Will Ciscos Switching Business Perform in Fiscal 2Q17?   [Feb-07-17 05:05PM  at Market Realist]
▶ Juniper Networks, a Cisco Rival, Guides Low   [Jan-27-17 04:25PM  at Investopedia]
▶ [$$] Juniper Networks: Buy on Weakness   [01:01PM  at Barrons.com]
Stock chart of JNPR Financial statements of JNPR
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.