Intrinsic value of First Solar, Inc. - FSLR

Previous Close

$65.98

  Intrinsic Value

$35.84

stock screener

  Rating & Target

sell

-46%

Previous close

$65.98

 
Intrinsic value

$35.84

 
Up/down potential

-46%

 
Rating

sell

We calculate the intrinsic value of FSLR 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 0001), $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 6.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  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
  3,590
  5,547
  8,296
  12,037
  16,982
  23,347
  31,338
  41,149
  52,948
  66,878
  83,047
  101,533
  122,382
  145,610
  171,212
  199,160
  229,416
  261,930
  296,649
  333,522
  372,499
  413,541
  456,617
  501,706
  548,802
  597,911
  649,054
  702,265
  757,592
  815,098
Variable operating expenses, $m
  2,759
  4,150
  6,105
  8,764
  12,280
  16,805
  22,487
  29,462
  37,851
  47,755
  59,045
  72,188
  87,011
  103,525
  121,727
  141,598
  163,109
  186,226
  210,911
  237,126
  264,838
  294,018
  324,644
  356,701
  390,185
  425,101
  461,462
  499,294
  538,631
  579,516
Fixed operating expenses, $m
  421
  430
  440
  449
  459
  469
  480
  490
  501
  512
  523
  535
  547
  559
  571
  584
  596
  610
  623
  637
  651
  665
  680
  695
  710
  725
  741
  758
  774
  791
Total operating expenses, $m
  3,180
  4,580
  6,545
  9,213
  12,739
  17,274
  22,967
  29,952
  38,352
  48,267
  59,568
  72,723
  87,558
  104,084
  122,298
  142,182
  163,705
  186,836
  211,534
  237,763
  265,489
  294,683
  325,324
  357,396
  390,895
  425,826
  462,203
  500,052
  539,405
  580,307
Operating income, $m
  410
  966
  1,751
  2,823
  4,242
  6,072
  8,371
  11,196
  14,596
  18,611
  23,479
  28,811
  34,824
  41,526
  48,913
  56,978
  65,710
  75,094
  85,115
  95,759
  107,010
  118,858
  131,293
  144,310
  157,907
  172,085
  186,850
  202,213
  218,187
  234,791
EBITDA, $m
  821
  1,489
  2,430
  3,715
  5,415
  7,607
  10,361
  13,745
  17,816
  22,624
  28,206
  34,590
  41,790
  49,814
  58,658
  68,314
  78,768
  90,003
  102,000
  114,742
  128,212
  142,396
  157,283
  172,866
  189,143
  206,116
  223,793
  242,184
  261,308
  281,184
Interest expense (income), $m
  0
  28
  97
  197
  337
  528
  780
  1,104
  1,512
  2,012
  2,614
  3,325
  4,149
  5,092
  6,155
  7,340
  8,646
  10,071
  11,614
  13,272
  15,043
  16,923
  18,911
  21,004
  23,201
  25,501
  27,903
  30,407
  33,016
  35,729
  38,551
Earnings before tax, $m
  382
  870
  1,555
  2,486
  3,715
  5,292
  7,267
  9,684
  12,583
  15,996
  20,155
  24,661
  29,732
  35,371
  41,573
  48,333
  55,639
  63,480
  71,843
  80,716
  90,087
  99,947
  110,289
  121,109
  132,406
  144,182
  156,443
  169,198
  182,458
  196,240
Tax expense, $m
  103
  235
  420
  671
  1,003
  1,429
  1,962
  2,615
  3,397
  4,319
  5,442
  6,659
  8,028
  9,550
  11,225
  13,050
  15,023
  17,140
  19,398
  21,793
  24,323
  26,986
  29,778
  32,699
  35,750
  38,929
  42,240
  45,683
  49,264
  52,985
Net income, $m
  279
  635
  1,135
  1,815
  2,712
  3,863
  5,305
  7,069
  9,186
  11,677
  14,713
  18,003
  21,705
  25,821
  30,348
  35,283
  40,617
  46,341
  52,446
  58,923
  65,763
  72,961
  80,511
  88,409
  96,656
  105,253
  114,203
  123,514
  133,194
  143,255

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  8,160
  12,607
  18,854
  27,356
  38,596
  53,060
  71,222
  93,520
  120,337
  151,995
  188,744
  230,757
  278,140
  330,932
  389,117
  452,637
  521,400
  595,295
  674,202
  758,003
  846,589
  939,867
  1,037,765
  1,140,241
  1,247,277
  1,358,889
  1,475,123
  1,596,057
  1,721,801
  1,852,495
Adjusted assets (=assets-cash), $m
  8,160
  12,607
  18,854
  27,356
  38,596
  53,060
  71,222
  93,520
  120,337
  151,995
  188,744
  230,757
  278,140
  330,932
  389,117
  452,637
  521,400
  595,295
  674,202
  758,003
  846,589
  939,867
  1,037,765
  1,140,241
  1,247,277
  1,358,889
  1,475,123
  1,596,057
  1,721,801
  1,852,495
Revenue / Adjusted assets
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
  0.440
Average production assets, $m
  2,984
  4,610
  6,894
  10,003
  14,112
  19,401
  26,042
  34,195
  44,000
  55,576
  69,012
  84,374
  101,699
  121,002
  142,277
  165,502
  190,645
  217,664
  246,515
  277,156
  309,547
  343,653
  379,449
  416,918
  456,054
  496,864
  539,364
  583,582
  629,559
  677,346
Working capital, $m
  248
  383
  572
  831
  1,172
  1,611
  2,162
  2,839
  3,653
  4,615
  5,730
  7,006
  8,444
  10,047
  11,814
  13,742
  15,830
  18,073
  20,469
  23,013
  25,702
  28,534
  31,507
  34,618
  37,867
  41,256
  44,785
  48,456
  52,274
  56,242
Total debt, $m
  1,615
  3,278
  5,615
  8,795
  12,998
  18,408
  25,201
  33,540
  43,569
  55,410
  69,154
  84,867
  102,588
  122,332
  144,093
  167,850
  193,567
  221,204
  250,715
  282,057
  315,188
  350,074
  386,688
  425,013
  465,045
  506,788
  550,259
  595,489
  642,517
  691,397
Total liabilities, $m
  3,052
  4,715
  7,051
  10,231
  14,435
  19,845
  26,637
  34,976
  45,006
  56,846
  70,590
  86,303
  104,024
  123,769
  145,530
  169,286
  195,003
  222,640
  252,152
  283,493
  316,624
  351,510
  388,124
  426,450
  466,482
  508,224
  551,696
  596,925
  643,953
  692,833
Total equity, $m
  5,108
  7,892
  11,803
  17,125
  24,161
  33,216
  44,585
  58,543
  75,331
  95,149
  118,154
  144,454
  174,116
  207,163
  243,587
  283,351
  326,396
  372,654
  422,051
  474,510
  529,965
  588,357
  649,641
  713,791
  780,795
  850,664
  923,427
  999,131
  1,077,847
  1,159,662
Total liabilities and equity, $m
  8,160
  12,607
  18,854
  27,356
  38,596
  53,061
  71,222
  93,519
  120,337
  151,995
  188,744
  230,757
  278,140
  330,932
  389,117
  452,637
  521,399
  595,294
  674,203
  758,003
  846,589
  939,867
  1,037,765
  1,140,241
  1,247,277
  1,358,888
  1,475,123
  1,596,056
  1,721,800
  1,852,495
Debt-to-equity ratio
  0.320
  0.420
  0.480
  0.510
  0.540
  0.550
  0.570
  0.570
  0.580
  0.580
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.590
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
Adjusted equity ratio
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626
  0.626

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  279
  635
  1,135
  1,815
  2,712
  3,863
  5,305
  7,069
  9,186
  11,677
  14,713
  18,003
  21,705
  25,821
  30,348
  35,283
  40,617
  46,341
  52,446
  58,923
  65,763
  72,961
  80,511
  88,409
  96,656
  105,253
  114,203
  123,514
  133,194
  143,255
Depreciation, amort., depletion, $m
  411
  522
  679
  892
  1,173
  1,535
  1,990
  2,549
  3,220
  4,013
  4,727
  5,779
  6,966
  8,288
  9,745
  11,336
  13,058
  14,908
  16,885
  18,983
  21,202
  23,538
  25,990
  28,556
  31,237
  34,032
  36,943
  39,971
  43,120
  46,394
Funds from operations, $m
  690
  1,157
  1,814
  2,706
  3,885
  5,398
  7,295
  9,618
  12,406
  15,690
  19,440
  23,782
  28,670
  34,108
  40,093
  46,619
  53,674
  61,249
  69,330
  77,906
  86,965
  96,499
  106,500
  116,965
  127,893
  139,285
  151,146
  163,486
  176,315
  189,649
Change in working capital, $m
  93
  135
  190
  258
  341
  439
  551
  677
  814
  961
  1,116
  1,276
  1,439
  1,603
  1,767
  1,928
  2,088
  2,243
  2,396
  2,544
  2,689
  2,832
  2,972
  3,111
  3,250
  3,389
  3,529
  3,672
  3,818
  3,968
Cash from operations, $m
  597
  1,022
  1,624
  2,448
  3,544
  4,959
  6,743
  8,941
  11,592
  14,729
  18,324
  22,506
  27,232
  32,506
  38,327
  44,690
  51,587
  59,006
  66,935
  75,362
  84,276
  93,667
  103,528
  113,854
  124,643
  135,896
  147,617
  159,814
  172,497
  185,681
Maintenance CAPEX, $m
  -128
  -204
  -316
  -472
  -685
  -967
  -1,329
  -1,784
  -2,342
  -3,014
  -3,807
  -4,727
  -5,779
  -6,966
  -8,288
  -9,745
  -11,336
  -13,058
  -14,908
  -16,885
  -18,983
  -21,202
  -23,538
  -25,990
  -28,556
  -31,237
  -34,032
  -36,943
  -39,971
  -43,120
New CAPEX, $m
  -1,120
  -1,626
  -2,284
  -3,109
  -4,110
  -5,289
  -6,641
  -8,153
  -9,806
  -11,576
  -13,437
  -15,362
  -17,325
  -19,303
  -21,275
  -23,225
  -25,142
  -27,019
  -28,852
  -30,641
  -32,390
  -34,106
  -35,796
  -37,469
  -39,137
  -40,810
  -42,500
  -44,218
  -45,977
  -47,787
Cash from investing activities, $m
  -1,248
  -1,830
  -2,600
  -3,581
  -4,795
  -6,256
  -7,970
  -9,937
  -12,148
  -14,590
  -17,244
  -20,089
  -23,104
  -26,269
  -29,563
  -32,970
  -36,478
  -40,077
  -43,760
  -47,526
  -51,373
  -55,308
  -59,334
  -63,459
  -67,693
  -72,047
  -76,532
  -81,161
  -85,948
  -90,907
Free cash flow, $m
  -650
  -808
  -976
  -1,133
  -1,251
  -1,296
  -1,226
  -995
  -556
  140
  1,081
  2,418
  4,128
  6,237
  8,764
  11,720
  15,109
  18,929
  23,174
  27,836
  32,902
  38,359
  44,195
  50,396
  56,951
  63,850
  71,086
  78,653
  86,549
  94,773
Issuance/(repayment) of debt, $m
  1,148
  1,663
  2,336
  3,180
  4,204
  5,410
  6,793
  8,339
  10,030
  11,840
  13,744
  15,713
  17,721
  19,744
  21,761
  23,756
  25,717
  27,637
  29,511
  31,342
  33,131
  34,886
  36,614
  38,326
  40,032
  41,743
  43,471
  45,229
  47,028
  48,880
Issuance/(repurchase) of shares, $m
  1,637
  2,149
  2,776
  3,508
  4,324
  5,192
  6,065
  6,889
  7,602
  8,141
  8,292
  8,298
  7,957
  7,227
  6,076
  4,480
  2,429
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  2,785
  3,812
  5,112
  6,688
  8,528
  10,602
  12,858
  15,228
  17,632
  19,981
  22,036
  24,011
  25,678
  26,971
  27,837
  28,236
  28,146
  27,637
  29,511
  31,342
  33,131
  34,886
  36,614
  38,326
  40,032
  41,743
  43,471
  45,229
  47,028
  48,880
Total cash flow (excl. dividends), $m
  2,135
  3,004
  4,136
  5,555
  7,277
  9,305
  11,631
  14,232
  17,076
  20,121
  23,116
  26,428
  29,806
  33,208
  36,601
  39,957
  43,255
  46,565
  52,686
  59,178
  66,033
  73,245
  80,809
  88,721
  96,982
  105,593
  114,557
  123,882
  133,577
  143,653
Retained Cash Flow (-), $m
  -1,916
  -2,784
  -3,911
  -5,322
  -7,036
  -9,055
  -11,370
  -13,958
  -16,788
  -19,818
  -23,005
  -26,301
  -29,662
  -33,048
  -36,424
  -39,763
  -43,046
  -46,258
  -49,396
  -52,460
  -55,455
  -58,392
  -61,285
  -64,150
  -67,005
  -69,869
  -72,762
  -75,705
  -78,716
  -81,815
Prev. year cash balance distribution, $m
  2,020
  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
  2,239
  220
  226
  232
  241
  251
  262
  274
  288
  303
  112
  128
  144
  161
  177
  193
  209
  307
  3,290
  6,718
  10,578
  14,853
  19,524
  24,572
  29,977
  35,724
  41,795
  48,178
  54,861
  61,838
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
  2,147
  201
  196
  191
  187
  182
  177
  171
  166
  159
  53
  55
  55
  54
  52
  49
  46
  57
  507
  854
  1,094
  1,232
  1,280
  1,251
  1,166
  1,042
  897
  745
  599
  466
Current shareholders' claim on cash, %
  72.1
  54.8
  43.3
  35.4
  29.7
  25.6
  22.5
  20.1
  18.3
  17.0
  15.9
  15.1
  14.5
  14.1
  13.8
  13.6
  13.5
  13.5
  13.5
  13.5
  13.5
  13.5
  13.5
  13.5
  13.5
  13.5
  13.5
  13.5
  13.5
  13.5

First Solar, Inc. is a provider of photovoltaic (PV) solar energy solutions. The Company designs, manufactures and sells PV solar modules with a thin-film semiconductor technology. The Company also develops, designs, constructs and sells PV solar power systems that primarily use the modules it manufactures. It operates through two segments: components and systems. The components segment is engaged in the design, manufacture and sale of cadmium telluride (CdTe) solar modules, which convert sunlight into electricity. The systems segment includes the development, construction, operation and maintenance of PV solar power systems, which primarily use its solar modules. In addition, the Company provides operations and maintenance (O&M) services to system owners that use solar modules manufactured by it or by third-party manufacturers. The Company's solar modules had an average rated power per module of approximately 114 watts, as of December 31, 2016.

FINANCIAL RATIOS  of  First Solar, Inc. (FSLR)

Valuation Ratios
P/E Ratio -19.2
Price to Sales 2.3
Price to Book 1.3
Price to Tangible Book
Price to Cash Flow 33.2
Price to Free Cash Flow -312
Growth Rates
Sales Growth Rate -17.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 38%
Cap. Spend. - 3 Yr. Gr. Rate -4.1%
Financial Strength
Quick Ratio 70
Current Ratio 1
LT Debt to Equity 3.1%
Total Debt to Equity 3.6%
Interest Coverage 0
Management Effectiveness
Return On Assets -5.1%
Ret/ On Assets - 3 Yr. Avg. 2.8%
Return On Total Capital -6.4%
Ret/ On T. Cap. - 3 Yr. Avg. 3.8%
Return On Equity -6.7%
Return On Equity - 3 Yr. Avg. 4%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 23.9%
Gross Margin - 3 Yr. Avg. 24.6%
EBITDA Margin -16%
EBITDA Margin - 3 Yr. Avg. 3.8%
Operating Margin -17%
Oper. Margin - 3 Yr. Avg. 3.3%
Pre-Tax Margin -16%
Pre-Tax Margin - 3 Yr. Avg. 3.8%
Net Profit Margin -12.1%
Net Profit Margin - 3 Yr. Avg. 4.9%
Effective Tax Rate -12.3%
Eff/ Tax Rate - 3 Yr. Avg. -2.1%
Payout Ratio 0%

FSLR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the FSLR stock intrinsic value calculation we used $2244 million for the last fiscal year's total revenue generated by First Solar, Inc.. The default revenue input number comes from 0001 income statement of First Solar, Inc.. 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 FSLR 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 FSLR is calculated based on our internal credit rating of First Solar, Inc., 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 First Solar, Inc..
    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 FSLR stock the variable cost ratio is equal to 80.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $412 million in the base year in the intrinsic value calculation for FSLR 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 First Solar, Inc..

Corporate tax rate of 27% is the nominal tax rate for First Solar, Inc.. 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 FSLR 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 FSLR are equal to 83.1%.

Life of production assets of 14.6 years is the average useful life of capital assets used in First Solar, Inc. 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 FSLR is equal to 6.9%. 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 - $5212.403 million for First Solar, Inc. - 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 104.822 million for First Solar, Inc. 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 First Solar, Inc. at the current share price and the inputted number of shares is $6.9 billion.

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