Intrinsic value of Oclaro - OCLR

Previous Close

$9.44

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$9.44

 
Intrinsic value premium content
 
Up/down potential premium content
 
Rating premium content
 
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 OCLR 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 1.5

 

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, %
  19.65
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  408
  653
  1,009
  1,508
  2,189
  3,088
  4,245
  5,698
  7,482
  9,627
  12,160
  15,100
  18,461
  22,251
  26,475
  31,129
  36,211
  41,712
  47,624
  53,936
  60,640
  67,727
  75,189
  83,021
  91,219
  99,782
  108,711
  118,010
  127,685
  137,744
  148,200
Variable operating expenses, $m
 
  149
  230
  344
  499
  704
  968
  1,299
  1,706
  2,195
  2,772
  3,443
  4,209
  5,073
  6,036
  7,097
  8,256
  9,510
  10,858
  12,297
  13,826
  15,442
  17,143
  18,929
  20,798
  22,750
  24,786
  26,906
  29,112
  31,406
  33,790
Fixed operating expenses, $m
 
  326
  334
  342
  351
  360
  369
  378
  387
  397
  407
  417
  428
  438
  449
  461
  472
  484
  496
  508
  521
  534
  547
  561
  575
  590
  604
  619
  635
  651
  667
Total operating expenses, $m
  392
  475
  564
  686
  850
  1,064
  1,337
  1,677
  2,093
  2,592
  3,179
  3,860
  4,637
  5,511
  6,485
  7,558
  8,728
  9,994
  11,354
  12,805
  14,347
  15,976
  17,690
  19,490
  21,373
  23,340
  25,390
  27,525
  29,747
  32,057
  34,457
Operating income, $m
  16
  178
  445
  822
  1,339
  2,024
  2,908
  4,021
  5,388
  7,035
  8,980
  11,240
  13,824
  16,740
  19,989
  23,571
  27,483
  31,718
  36,269
  41,130
  46,293
  51,751
  57,499
  63,531
  69,846
  76,442
  83,321
  90,484
  97,938
  105,688
  113,743
EBITDA, $m
  33
  196
  472
  863
  1,398
  2,108
  3,025
  4,177
  5,593
  7,299
  9,313
  11,653
  14,330
  17,349
  20,714
  24,424
  28,475
  32,861
  37,574
  42,608
  47,955
  53,607
  59,559
  65,806
  72,346
  79,176
  86,299
  93,718
  101,436
  109,462
  117,804
Interest expense (income), $m
  4
  4
  11
  20
  34
  53
  78
  110
  150
  199
  259
  329
  410
  503
  608
  725
  854
  994
  1,146
  1,310
  1,484
  1,670
  1,866
  2,072
  2,289
  2,516
  2,752
  2,999
  3,257
  3,524
  3,803
Earnings before tax, $m
  9
  174
  434
  802
  1,304
  1,971
  2,830
  3,911
  5,238
  6,835
  8,721
  10,911
  13,414
  16,236
  19,381
  22,846
  26,629
  30,724
  35,123
  39,821
  44,809
  50,081
  55,633
  61,459
  67,557
  73,927
  80,568
  87,485
  94,681
  102,163
  109,941
Tax expense, $m
  0
  47
  117
  216
  352
  532
  764
  1,056
  1,414
  1,846
  2,355
  2,946
  3,622
  4,384
  5,233
  6,169
  7,190
  8,295
  9,483
  10,752
  12,098
  13,522
  15,021
  16,594
  18,240
  19,960
  21,753
  23,621
  25,564
  27,584
  29,684
Net income, $m
  9
  127
  317
  585
  952
  1,439
  2,066
  2,855
  3,824
  4,990
  6,367
  7,965
  9,792
  11,853
  14,148
  16,678
  19,439
  22,428
  25,640
  29,069
  32,710
  36,559
  40,612
  44,865
  49,317
  53,966
  58,815
  63,864
  69,117
  74,579
  80,257

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  96
  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
  359
  421
  650
  972
  1,411
  1,991
  2,737
  3,674
  4,824
  6,207
  7,840
  9,735
  11,902
  14,346
  17,069
  20,071
  23,347
  26,894
  30,705
  34,775
  39,098
  43,667
  48,478
  53,528
  58,813
  64,334
  70,091
  76,086
  82,324
  88,810
  95,551
Adjusted assets (=assets-cash), $m
  263
  421
  650
  972
  1,411
  1,991
  2,737
  3,674
  4,824
  6,207
  7,840
  9,735
  11,902
  14,346
  17,069
  20,071
  23,347
  26,894
  30,705
  34,775
  39,098
  43,667
  48,478
  53,528
  58,813
  64,334
  70,091
  76,086
  82,324
  88,810
  95,551
Revenue / Adjusted assets
  1.551
  1.551
  1.552
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
  1.551
Average production assets, $m
  56
  89
  138
  207
  300
  423
  582
  781
  1,025
  1,319
  1,666
  2,069
  2,529
  3,048
  3,627
  4,265
  4,961
  5,715
  6,524
  7,389
  8,308
  9,279
  10,301
  11,374
  12,497
  13,670
  14,893
  16,167
  17,493
  18,871
  20,303
Working capital, $m
  180
  141
  218
  326
  473
  667
  917
  1,231
  1,616
  2,079
  2,626
  3,261
  3,987
  4,806
  5,719
  6,724
  7,822
  9,010
  10,287
  11,650
  13,098
  14,629
  16,241
  17,933
  19,703
  21,553
  23,482
  25,490
  27,580
  29,753
  32,011
Total debt, $m
  68
  177
  341
  571
  885
  1,299
  1,833
  2,503
  3,325
  4,314
  5,482
  6,837
  8,386
  10,134
  12,081
  14,226
  16,569
  19,105
  21,830
  24,740
  27,831
  31,098
  34,538
  38,148
  41,927
  45,875
  49,991
  54,278
  58,738
  63,375
  68,195
Total liabilities, $m
  192
  301
  465
  695
  1,009
  1,423
  1,957
  2,627
  3,449
  4,438
  5,606
  6,961
  8,510
  10,258
  12,205
  14,350
  16,693
  19,229
  21,954
  24,864
  27,955
  31,222
  34,662
  38,272
  42,051
  45,999
  50,115
  54,402
  58,862
  63,499
  68,319
Total equity, $m
  167
  120
  185
  277
  402
  567
  780
  1,047
  1,375
  1,769
  2,234
  2,775
  3,392
  4,089
  4,865
  5,720
  6,654
  7,665
  8,751
  9,911
  11,143
  12,445
  13,816
  15,255
  16,762
  18,335
  19,976
  21,685
  23,462
  25,311
  27,232
Total liabilities and equity, $m
  359
  421
  650
  972
  1,411
  1,990
  2,737
  3,674
  4,824
  6,207
  7,840
  9,736
  11,902
  14,347
  17,070
  20,070
  23,347
  26,894
  30,705
  34,775
  39,098
  43,667
  48,478
  53,527
  58,813
  64,334
  70,091
  76,087
  82,324
  88,810
  95,551
Debt-to-equity ratio
  0.407
  1.480
  1.840
  2.060
  2.200
  2.290
  2.350
  2.390
  2.420
  2.440
  2.450
  2.460
  2.470
  2.480
  2.480
  2.490
  2.490
  2.490
  2.490
  2.500
  2.500
  2.500
  2.500
  2.500
  2.500
  2.500
  2.500
  2.500
  2.500
  2.500
  2.500
Adjusted equity ratio
  0.270
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285
  0.285

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  9
  127
  317
  585
  952
  1,439
  2,066
  2,855
  3,824
  4,990
  6,367
  7,965
  9,792
  11,853
  14,148
  16,678
  19,439
  22,428
  25,640
  29,069
  32,710
  36,559
  40,612
  44,865
  49,317
  53,966
  58,815
  63,864
  69,117
  74,579
  80,257
Depreciation, amort., depletion, $m
  17
  18
  28
  41
  60
  85
  116
  156
  205
  264
  333
  414
  506
  610
  725
  853
  992
  1,143
  1,305
  1,478
  1,662
  1,856
  2,060
  2,275
  2,499
  2,734
  2,979
  3,233
  3,499
  3,774
  4,061
Funds from operations, $m
  -21
  145
  344
  626
  1,012
  1,523
  2,182
  3,011
  4,029
  5,254
  6,700
  8,379
  10,298
  12,462
  14,874
  17,531
  20,431
  23,571
  26,945
  30,547
  34,372
  38,415
  42,672
  47,140
  51,816
  56,700
  61,793
  67,097
  72,616
  78,353
  84,317
Change in working capital, $m
  -27
  53
  77
  108
  147
  194
  250
  314
  385
  463
  547
  635
  726
  819
  912
  1,005
  1,098
  1,188
  1,277
  1,364
  1,448
  1,531
  1,612
  1,692
  1,771
  1,850
  1,929
  2,009
  2,090
  2,173
  2,258
Cash from operations, $m
  6
  103
  268
  518
  865
  1,329
  1,932
  2,697
  3,644
  4,790
  6,153
  7,744
  9,572
  11,643
  13,961
  16,525
  19,334
  22,383
  25,668
  29,183
  32,924
  36,884
  41,060
  45,448
  50,045
  54,851
  59,865
  65,089
  70,526
  76,181
  82,059
Maintenance CAPEX, $m
  0
  -11
  -18
  -28
  -41
  -60
  -85
  -116
  -156
  -205
  -264
  -333
  -414
  -506
  -610
  -725
  -853
  -992
  -1,143
  -1,305
  -1,478
  -1,662
  -1,856
  -2,060
  -2,275
  -2,499
  -2,734
  -2,979
  -3,233
  -3,499
  -3,774
New CAPEX, $m
  -28
  -33
  -49
  -68
  -93
  -123
  -159
  -199
  -244
  -294
  -347
  -403
  -460
  -519
  -579
  -638
  -696
  -754
  -810
  -865
  -918
  -971
  -1,022
  -1,073
  -1,123
  -1,173
  -1,223
  -1,274
  -1,325
  -1,378
  -1,432
Cash from investing activities, $m
  -25
  -44
  -67
  -96
  -134
  -183
  -244
  -315
  -400
  -499
  -611
  -736
  -874
  -1,025
  -1,189
  -1,363
  -1,549
  -1,746
  -1,953
  -2,170
  -2,396
  -2,633
  -2,878
  -3,133
  -3,398
  -3,672
  -3,957
  -4,253
  -4,558
  -4,877
  -5,206
Free cash flow, $m
  -19
  59
  201
  422
  731
  1,146
  1,689
  2,382
  3,243
  4,291
  5,542
  7,008
  8,698
  10,618
  12,773
  15,162
  17,785
  20,637
  23,715
  27,014
  30,528
  34,252
  38,182
  42,315
  46,647
  51,178
  55,908
  60,836
  65,967
  71,304
  76,852
Issuance/(repayment) of debt, $m
  -3
  113
  164
  230
  314
  415
  533
  670
  822
  989
  1,168
  1,355
  1,549
  1,747
  1,947
  2,146
  2,343
  2,536
  2,725
  2,910
  3,091
  3,267
  3,440
  3,610
  3,779
  3,947
  4,116
  4,287
  4,460
  4,637
  4,820
Issuance/(repurchase) of shares, $m
  -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
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -5
  113
  164
  230
  314
  415
  533
  670
  822
  989
  1,168
  1,355
  1,549
  1,747
  1,947
  2,146
  2,343
  2,536
  2,725
  2,910
  3,091
  3,267
  3,440
  3,610
  3,779
  3,947
  4,116
  4,287
  4,460
  4,637
  4,820
Total cash flow (excl. dividends), $m
  -16
  171
  365
  653
  1,044
  1,560
  2,223
  3,052
  4,065
  5,280
  6,709
  8,363
  10,247
  12,366
  14,720
  17,308
  20,127
  23,173
  26,440
  29,924
  33,618
  37,519
  41,622
  45,925
  50,427
  55,126
  60,024
  65,123
  70,427
  75,941
  81,672
Retained Cash Flow (-), $m
  -14
  -45
  -65
  -92
  -125
  -165
  -213
  -267
  -328
  -394
  -465
  -540
  -618
  -697
  -776
  -855
  -934
  -1,011
  -1,086
  -1,160
  -1,232
  -1,302
  -1,371
  -1,439
  -1,506
  -1,573
  -1,641
  -1,709
  -1,778
  -1,848
  -1,921
Prev. year cash balance distribution, $m
 
  92
  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
 
  219
  300
  561
  919
  1,395
  2,010
  2,785
  3,738
  4,886
  6,244
  7,823
  9,629
  11,669
  13,944
  16,453
  19,194
  22,162
  25,354
  28,764
  32,386
  36,217
  40,251
  44,486
  48,920
  53,552
  58,383
  63,414
  68,649
  74,093
  79,751
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
 
  209
  274
  488
  757
  1,081
  1,459
  1,881
  2,336
  2,807
  3,274
  3,715
  4,109
  4,437
  4,681
  4,830
  4,877
  4,822
  4,669
  4,429
  4,115
  3,746
  3,340
  2,916
  2,492
  2,083
  1,703
  1,361
  1,062
  809
  600
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

Oclaro, Inc. designs, manufactures, and markets lasers and optical components, modules, and subsystems for the optical communications, industrial, and consumer laser markets worldwide. The company’s products generate, detect, combine, and separate light signals in optical communications networks. It offers client side transceivers, including pluggable transceivers; line side transceivers; tunable laser transmitters, such as discrete lasers and co-packaged laser modulators; lithium niobate modulators to manipulate the phase or the amplitude of an optical signal; transponder modules for transmitter and receiver functions; and discrete lasers and receivers for metro and long-haul applications. The company markets its products through direct sales force, as well as through sales representatives and resellers. It serves network equipment manufacturers of telecommunications and datacom systems, and hyperscale data center operators. The company was formerly known as Bookham, Inc. and changed its name to Oclaro, Inc. in April 2009. Oclaro, Inc. was founded in 1988 and is headquartered in San Jose, California.

FINANCIAL RATIOS  of  Oclaro (OCLR)

Valuation Ratios
P/E Ratio 117.7
Price to Sales 2.6
Price to Book 6.3
Price to Tangible Book
Price to Cash Flow 176.5
Price to Free Cash Flow -48.1
Growth Rates
Sales Growth Rate 19.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 55.6%
Cap. Spend. - 3 Yr. Gr. Rate 10.5%
Financial Strength
Quick Ratio 24
Current Ratio 0
LT Debt to Equity 38.3%
Total Debt to Equity 40.7%
Interest Coverage 3
Management Effectiveness
Return On Assets 3.8%
Ret/ On Assets - 3 Yr. Avg. -2%
Return On Total Capital 4%
Ret/ On T. Cap. - 3 Yr. Avg. -4.9%
Return On Equity 5.6%
Return On Equity - 3 Yr. Avg. -5.3%
Asset Turnover 1.2
Profitability Ratios
Gross Margin 28.4%
Gross Margin - 3 Yr. Avg. 19.5%
EBITDA Margin 7.4%
EBITDA Margin - 3 Yr. Avg. -6.8%
Operating Margin 3.9%
Oper. Margin - 3 Yr. Avg. -11.9%
Pre-Tax Margin 2.2%
Pre-Tax Margin - 3 Yr. Avg. -13.4%
Net Profit Margin 2.2%
Net Profit Margin - 3 Yr. Avg. -3.3%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 2.7%
Payout Ratio 0%

OCLR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the OCLR stock intrinsic value calculation we used $408 million for the last fiscal year's total revenue generated by Oclaro. The default revenue input number comes from 2016 income statement of Oclaro. 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 OCLR stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for OCLR is calculated based on our internal credit rating of Oclaro, 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 Oclaro.
    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 OCLR stock the variable cost ratio is equal to 22.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $318 million in the base year in the intrinsic value calculation for OCLR 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 6% for Oclaro.

Corporate tax rate of 27% is the nominal tax rate for Oclaro. 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 OCLR 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 OCLR are equal to 13.7%.

Life of production assets of 3.3 years is the average useful life of capital assets used in Oclaro 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 OCLR is equal to 21.6%. 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 - $167 million for Oclaro - 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 160.045 million for Oclaro 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 Oclaro at the current share price and the inputted number of shares is $1.5 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
NPTN NeoPhotonics 8.31 prem.  prem.
FNSR Finisar 27.14 prem.  prem.
AAOI Applied Optoel 63.58 prem.  prem.
LITE Lumentum Holdi 62.45 prem.  prem.
ACIA Acacia Communi 41.64 prem.  prem.
EMKR Emcore 11.35 prem.  prem.
VIAV Viavi Solution 10.93 prem.  prem.

COMPANY NEWS

▶ Benzinga's Option Alert Recap From June 14   [Jun-14-17 04:10PM  Benzinga]
▶ 4 Top Small-Cap Stocks to Buy in June   [Jun-12-17 08:49AM  Motley Fool]
▶ ETFs with exposure to Oclaro, Inc. : June 8, 2017   [Jun-08-17 01:50PM  Capital Cube]
▶ Lumentum Holdings Hits New High, Other Fiber Stocks Rally   [Jun-06-17 04:32PM  Investor's Business Daily]
▶ Why Oclaro, Inc. Jumped 13% Higher Today   [01:26PM  Motley Fool]
▶ ETFs with exposure to Oclaro, Inc. : May 29, 2017   [May-29-17 12:51PM  Capital Cube]
▶ Oclaro, Inc.: Strong price momentum but will it sustain?   [May-23-17 11:24AM  Capital Cube]
▶ This Market is Now Overbought; Waiting for Another Pullback   [May-22-17 10:56AM  TheStreet.com]
▶ ETFs with exposure to Oclaro, Inc. : May 18, 2017   [May-18-17 01:55PM  Capital Cube]
▶ Oclaro, Inc. Value Analysis (NASDAQ:OCLR) : May 16, 2017   [May-16-17 01:13PM  Capital Cube]
▶ How Oclaro, Inc. Shares Fell 18% in April   [May-08-17 06:42PM  Motley Fool]
▶ Who Needs China? Fiber Optic Stocks Rally Off Lows On Amazon, Verizon Hopes   [May-03-17 04:36PM  Investor's Business Daily]
▶ Story Stocks from Briefing.com   [09:51AM  Briefing.com]
▶ Oclaro beats Street 3Q forecasts   [May-02-17 06:37PM  Associated Press]
▶ Why Fiber-Optic Stocks Were The Market's Biggest Losers Today   [Apr-26-17 04:58PM  Investor's Business Daily]
▶ ETFs with exposure to Oclaro, Inc. : April 5, 2017   [Apr-05-17 05:13PM  Capital Cube]
▶ How Oclaro, Inc. Rose 15.5% in March   [Apr-04-17 06:19PM  Motley Fool]
▶ Fiber Optic Stocks Are Hot, But This Is Why M&A Is On The Back Burner   [Mar-24-17 04:14PM  Investor's Business Daily]
▶ Ciena Merchant Chip Strategy Targets Acacia, Inphi And China   [Mar-21-17 04:11PM  Investor's Business Daily]
▶ Five Cheap Tech Stocks to Buy Now   [01:19PM  Insider Monkey]
▶ 3 High-Growth Stocks You May Be Overlooking   [Mar-19-17 09:54AM  at Motley Fool]
▶ Panic Selling In Oclaro Creates An Opportunity   [Mar-02-17 05:13AM  at Forbes]
▶ Oclaro to Participate in the 29th Annual ROTH Conference   [Feb-28-17 04:05PM  PR Newswire]
▶ Bears Are Getting Squeezed Once Again   [Feb-23-17 01:42PM  at TheStreet]
▶ Oclaro Is Cheap Here, Will Not Remain So For Long   [Feb-19-17 05:44AM  at Forbes]
▶ Better Buy: Infinera Corporation vs. Oclaro Inc.   [Feb-15-17 10:42AM  at Motley Fool]
Stock chart of OCLR Financial statements of OCLR Annual reports of OCLR
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.