Intrinsic value of Infinera Corporation - INFN

Previous Close

$4.79

  Intrinsic Value

$2.84

stock screener

  Rating & Target

sell

-41%

Previous close

$4.79

 
Intrinsic value

$2.84

 
Up/down potential

-41%

 
Rating

sell

We calculate the intrinsic value of INFN 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 0.8

 

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
  1,509
  2,331
  3,486
  5,058
  7,136
  9,811
  13,169
  17,292
  22,251
  28,104
  34,899
  42,667
  51,429
  61,190
  71,949
  83,693
  96,408
  110,071
  124,661
  140,156
  156,536
  173,783
  191,885
  210,833
  230,624
  251,261
  272,753
  295,114
  318,364
  342,530
Variable operating expenses, $m
  1,511
  2,316
  3,446
  4,984
  7,018
  9,636
  12,922
  16,957
  21,809
  27,538
  34,153
  41,756
  50,329
  59,882
  70,411
  81,905
  94,347
  107,719
  121,997
  137,161
  153,190
  170,069
  187,784
  206,327
  225,695
  245,891
  266,923
  288,806
  311,560
  335,209
Fixed operating expenses, $m
  180
  184
  188
  192
  196
  201
  205
  209
  214
  219
  224
  229
  234
  239
  244
  249
  255
  260
  266
  272
  278
  284
  290
  297
  303
  310
  317
  324
  331
  338
Total operating expenses, $m
  1,691
  2,500
  3,634
  5,176
  7,214
  9,837
  13,127
  17,166
  22,023
  27,757
  34,377
  41,985
  50,563
  60,121
  70,655
  82,154
  94,602
  107,979
  122,263
  137,433
  153,468
  170,353
  188,074
  206,624
  225,998
  246,201
  267,240
  289,130
  311,891
  335,547
Operating income, $m
  -182
  -168
  -148
  -118
  -78
  -25
  42
  126
  227
  348
  522
  683
  866
  1,069
  1,294
  1,540
  1,806
  2,092
  2,398
  2,724
  3,068
  3,430
  3,811
  4,209
  4,626
  5,060
  5,513
  5,984
  6,474
  6,983
EBITDA, $m
  -36
  39
  145
  291
  485
  736
  1,052
  1,441
  1,910
  2,464
  3,108
  3,845
  4,676
  5,603
  6,625
  7,741
  8,949
  10,248
  11,635
  13,109
  14,667
  16,307
  18,029
  19,832
  21,715
  23,678
  25,723
  27,851
  30,064
  32,364
Interest expense (income), $m
  3
  34
  82
  151
  249
  383
  559
  786
  1,071
  1,421
  1,841
  2,338
  2,914
  3,573
  4,317
  5,145
  6,058
  7,054
  8,133
  9,292
  10,530
  11,845
  13,234
  14,698
  16,233
  17,841
  19,520
  21,271
  23,094
  24,991
  26,964
Earnings before tax, $m
  -216
  -250
  -299
  -367
  -461
  -584
  -744
  -945
  -1,193
  -1,494
  -1,816
  -2,231
  -2,708
  -3,248
  -3,851
  -4,518
  -5,248
  -6,041
  -6,894
  -7,806
  -8,777
  -9,804
  -10,887
  -12,024
  -13,215
  -14,460
  -15,758
  -17,110
  -18,518
  -19,981
Tax expense, $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
Net income, $m
  -216
  -250
  -299
  -367
  -461
  -584
  -744
  -945
  -1,193
  -1,494
  -1,816
  -2,231
  -2,708
  -3,248
  -3,851
  -4,518
  -5,248
  -6,041
  -6,894
  -7,806
  -8,777
  -9,804
  -10,887
  -12,024
  -13,215
  -14,460
  -15,758
  -17,110
  -18,518
  -19,981

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
  2,879
  4,449
  6,653
  9,653
  13,619
  18,723
  25,132
  33,000
  42,463
  53,634
  66,601
  81,427
  98,146
  116,775
  137,306
  159,720
  183,984
  210,059
  237,903
  267,474
  298,733
  331,647
  366,193
  402,353
  440,122
  479,506
  520,521
  563,195
  607,565
  653,683
Adjusted assets (=assets-cash), $m
  2,879
  4,449
  6,653
  9,653
  13,619
  18,723
  25,132
  33,000
  42,463
  53,634
  66,601
  81,427
  98,146
  116,775
  137,306
  159,720
  183,984
  210,059
  237,903
  267,474
  298,733
  331,647
  366,193
  402,353
  440,122
  479,506
  520,521
  563,195
  607,565
  653,683
Revenue / Adjusted assets
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
  0.524
Average production assets, $m
  682
  1,054
  1,576
  2,286
  3,226
  4,435
  5,952
  7,816
  10,057
  12,703
  15,774
  19,286
  23,246
  27,658
  32,521
  37,829
  43,576
  49,752
  56,347
  63,351
  70,754
  78,550
  86,732
  95,296
  104,242
  113,570
  123,284
  133,392
  143,901
  154,824
Working capital, $m
  338
  522
  781
  1,133
  1,599
  2,198
  2,950
  3,873
  4,984
  6,295
  7,817
  9,558
  11,520
  13,707
  16,116
  18,747
  21,595
  24,656
  27,924
  31,395
  35,064
  38,927
  42,982
  47,227
  51,660
  56,283
  61,097
  66,106
  71,314
  76,727
Total debt, $m
  1,117
  2,072
  3,415
  5,242
  7,657
  10,765
  14,668
  19,460
  25,223
  32,026
  39,923
  48,952
  59,134
  70,479
  82,983
  96,633
  111,409
  127,289
  144,246
  162,255
  181,291
  201,336
  222,374
  244,396
  267,397
  291,382
  316,360
  342,349
  369,370
  397,456
Total liabilities, $m
  1,754
  2,709
  4,052
  5,879
  8,294
  11,402
  15,305
  20,097
  25,860
  32,663
  40,560
  49,589
  59,771
  71,116
  83,620
  97,270
  112,046
  127,926
  144,883
  162,892
  181,928
  201,973
  223,011
  245,033
  268,034
  292,019
  316,997
  342,986
  370,007
  398,093
Total equity, $m
  1,126
  1,739
  2,601
  3,774
  5,325
  7,321
  9,827
  12,903
  16,603
  20,971
  26,041
  31,838
  38,375
  45,659
  53,687
  62,451
  71,938
  82,133
  93,020
  104,582
  116,805
  129,674
  143,181
  157,320
  172,088
  187,487
  203,524
  220,209
  237,558
  255,590
Total liabilities and equity, $m
  2,880
  4,448
  6,653
  9,653
  13,619
  18,723
  25,132
  33,000
  42,463
  53,634
  66,601
  81,427
  98,146
  116,775
  137,307
  159,721
  183,984
  210,059
  237,903
  267,474
  298,733
  331,647
  366,192
  402,353
  440,122
  479,506
  520,521
  563,195
  607,565
  653,683
Debt-to-equity ratio
  0.990
  1.190
  1.310
  1.390
  1.440
  1.470
  1.490
  1.510
  1.520
  1.530
  1.530
  1.540
  1.540
  1.540
  1.550
  1.550
  1.550
  1.550
  1.550
  1.550
  1.550
  1.550
  1.550
  1.550
  1.550
  1.550
  1.550
  1.550
  1.550
  1.560
Adjusted equity ratio
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391
  0.391

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -216
  -250
  -299
  -367
  -461
  -584
  -744
  -945
  -1,193
  -1,494
  -1,816
  -2,231
  -2,708
  -3,248
  -3,851
  -4,518
  -5,248
  -6,041
  -6,894
  -7,806
  -8,777
  -9,804
  -10,887
  -12,024
  -13,215
  -14,460
  -15,758
  -17,110
  -18,518
  -19,981
Depreciation, amort., depletion, $m
  146
  207
  293
  409
  563
  761
  1,010
  1,316
  1,683
  2,117
  2,586
  3,162
  3,811
  4,534
  5,331
  6,202
  7,144
  8,156
  9,237
  10,385
  11,599
  12,877
  14,218
  15,622
  17,089
  18,618
  20,211
  21,867
  23,590
  25,381
Funds from operations, $m
  -69
  -43
  -6
  42
  102
  177
  266
  371
  490
  623
  770
  931
  1,103
  1,286
  1,480
  1,683
  1,895
  2,115
  2,343
  2,579
  2,822
  3,073
  3,332
  3,599
  3,874
  4,158
  4,453
  4,757
  5,072
  5,400
Change in working capital, $m
  127
  184
  259
  352
  466
  599
  752
  924
  1,111
  1,311
  1,522
  1,740
  1,963
  2,187
  2,410
  2,631
  2,848
  3,061
  3,268
  3,471
  3,669
  3,863
  4,055
  4,244
  4,433
  4,623
  4,814
  5,009
  5,208
  5,413
Cash from operations, $m
  -196
  -227
  -265
  -311
  -363
  -422
  -486
  -553
  -621
  -688
  -752
  -810
  -860
  -900
  -930
  -948
  -953
  -945
  -925
  -892
  -847
  -790
  -723
  -646
  -559
  -464
  -362
  -252
  -136
  -13
Maintenance CAPEX, $m
  -70
  -112
  -173
  -258
  -375
  -529
  -727
  -976
  -1,281
  -1,649
  -2,082
  -2,586
  -3,162
  -3,811
  -4,534
  -5,331
  -6,202
  -7,144
  -8,156
  -9,237
  -10,385
  -11,599
  -12,877
  -14,218
  -15,622
  -17,089
  -18,618
  -20,211
  -21,867
  -23,590
New CAPEX, $m
  -256
  -372
  -522
  -711
  -939
  -1,209
  -1,518
  -1,863
  -2,241
  -2,646
  -3,071
  -3,511
  -3,960
  -4,412
  -4,863
  -5,309
  -5,747
  -6,176
  -6,595
  -7,004
  -7,404
  -7,796
  -8,182
  -8,564
  -8,946
  -9,328
  -9,714
  -10,107
  -10,509
  -10,923
Cash from investing activities, $m
  -326
  -484
  -695
  -969
  -1,314
  -1,738
  -2,245
  -2,839
  -3,522
  -4,295
  -5,153
  -6,097
  -7,122
  -8,223
  -9,397
  -10,640
  -11,949
  -13,320
  -14,751
  -16,241
  -17,789
  -19,395
  -21,059
  -22,782
  -24,568
  -26,417
  -28,332
  -30,318
  -32,376
  -34,513
Free cash flow, $m
  -522
  -710
  -960
  -1,279
  -1,677
  -2,160
  -2,731
  -3,392
  -4,144
  -4,983
  -5,905
  -6,907
  -7,981
  -9,123
  -10,327
  -11,587
  -12,901
  -14,265
  -15,676
  -17,133
  -18,636
  -20,185
  -21,782
  -23,429
  -25,127
  -26,881
  -28,694
  -30,570
  -32,512
  -34,527
Issuance/(repayment) of debt, $m
  656
  956
  1,342
  1,827
  2,415
  3,108
  3,903
  4,792
  5,763
  6,803
  7,897
  9,029
  10,182
  11,345
  12,504
  13,650
  14,777
  15,880
  16,957
  18,009
  19,037
  20,045
  21,038
  22,022
  23,002
  23,985
  24,978
  25,988
  27,022
  28,086
Issuance/(repurchase) of shares, $m
  638
  863
  1,161
  1,541
  2,011
  2,580
  3,250
  4,021
  4,893
  5,862
  6,886
  8,028
  9,245
  10,531
  11,879
  13,282
  14,736
  16,236
  17,781
  19,368
  20,999
  22,674
  24,394
  26,162
  27,983
  29,859
  31,795
  33,796
  35,867
  38,013
Cash from financing (excl. dividends), $m  
  1,294
  1,819
  2,503
  3,368
  4,426
  5,688
  7,153
  8,813
  10,656
  12,665
  14,783
  17,057
  19,427
  21,876
  24,383
  26,932
  29,513
  32,116
  34,738
  37,377
  40,036
  42,719
  45,432
  48,184
  50,985
  53,844
  56,773
  59,784
  62,889
  66,099
Total cash flow (excl. dividends), $m
  772
  1,109
  1,543
  2,088
  2,749
  3,529
  4,422
  5,421
  6,513
  7,682
  8,877
  10,149
  11,446
  12,753
  14,056
  15,345
  16,611
  17,851
  19,062
  20,244
  21,400
  22,533
  23,650
  24,755
  25,857
  26,962
  28,079
  29,214
  30,376
  31,572
Retained Cash Flow (-), $m
  -638
  -863
  -1,161
  -1,541
  -2,011
  -2,580
  -3,250
  -4,021
  -4,893
  -5,862
  -6,886
  -8,028
  -9,245
  -10,531
  -11,879
  -13,282
  -14,736
  -16,236
  -17,781
  -19,368
  -20,999
  -22,674
  -24,394
  -26,162
  -27,983
  -29,859
  -31,795
  -33,796
  -35,867
  -38,013
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
  134
  245
  383
  548
  738
  949
  1,172
  1,399
  1,619
  1,821
  1,992
  2,122
  2,201
  2,222
  2,177
  2,063
  1,876
  1,615
  1,281
  876
  401
  -140
  -744
  -1,407
  -2,126
  -2,896
  -3,716
  -4,581
  -5,490
  -6,441
Discount rate, %
  6.80
  7.14
  7.50
  7.87
  8.27
  8.68
  9.11
  9.57
  10.05
  10.55
  11.08
  11.63
  12.21
  12.82
  13.46
  14.14
  14.84
  15.59
  16.37
  17.18
  18.04
  18.94
  19.89
  20.89
  21.93
  23.03
  24.18
  25.39
  26.66
  27.99
PV of cash for distribution, $m
  126
  214
  308
  404
  496
  576
  637
  674
  684
  668
  627
  567
  492
  410
  327
  249
  178
  119
  72
  37
  12
  -3
  -11
  -15
  -15
  -13
  -11
  -8
  -6
  -4
Current shareholders' claim on cash, %
  56.9
  34.6
  22.2
  14.8
  10.3
  7.3
  5.3
  4.0
  3.0
  2.3
  1.8
  1.4
  1.2
  0.9
  0.8
  0.6
  0.5
  0.5
  0.4
  0.3
  0.3
  0.2
  0.2
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.1

Infinera Corporation provides optical transport networking equipment, software and services to telecommunications service providers, Internet content providers (ICPs), cable providers, wholesale and enterprise carriers, research and education institutions, enterprise customers and government entities across the globe. The Company's portfolio consists of the Infinera DTN-X Family, the Infinera DTN platform, the Infinera Cloud Xpress Family, the Infinera XTM Series, the Infinera XTG Series and the Infinera FlexILS platform, addressing long-haul, subsea and metro networks end-to-end. Its technology includes Infinera Intelligent Transport Network Architecture, Infinera Photonic Integrated Circuits, Infinera FlexCoherent Processor, Super-Channels, Sliceable Photonics, Disaggregation, Integrated Digital Switching, Infinera Instant Bandwidth, Infinera Packet-Optical Transport, Multi-layer Switching and Optimization, and Management, Control and Security.

FINANCIAL RATIOS  of  Infinera Corporation (INFN)

Valuation Ratios
P/E Ratio -28.9
Price to Sales 0.8
Price to Book 0.9
Price to Tangible Book
Price to Cash Flow 18.3
Price to Free Cash Flow -138.9
Growth Rates
Sales Growth Rate -1.9%
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 15.4%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 17.6%
Total Debt to Equity 17.6%
Interest Coverage -9
Management Effectiveness
Return On Assets -1.8%
Ret/ On Assets - 3 Yr. Avg. 1.9%
Return On Total Capital -2.7%
Ret/ On T. Cap. - 3 Yr. Avg. 2.2%
Return On Equity -3.1%
Return On Equity - 3 Yr. Avg. 2.7%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 45.3%
Gross Margin - 3 Yr. Avg. 44.6%
EBITDA Margin 4%
EBITDA Margin - 3 Yr. Avg. 7%
Operating Margin -3%
Oper. Margin - 3 Yr. Avg. 2.6%
Pre-Tax Margin -3.3%
Pre-Tax Margin - 3 Yr. Avg. 1.6%
Net Profit Margin -2.8%
Net Profit Margin - 3 Yr. Avg. 1.7%
Effective Tax Rate 17.2%
Eff/ Tax Rate - 3 Yr. Avg. 10.6%
Payout Ratio 0%

INFN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the INFN stock intrinsic value calculation we used $943 million for the last fiscal year's total revenue generated by Infinera Corporation. The default revenue input number comes from 0001 income statement of Infinera Corporation. 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 INFN 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 6.8%, whose default value for INFN is calculated based on our internal credit rating of Infinera Corporation, 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 Infinera Corporation.
    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 INFN stock the variable cost ratio is equal to 101.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $176 million in the base year in the intrinsic value calculation for INFN 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 7.3% for Infinera Corporation.

Corporate tax rate of 27% is the nominal tax rate for Infinera Corporation. 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 INFN 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 INFN are equal to 45.2%.

Life of production assets of 6.1 years is the average useful life of capital assets used in Infinera Corporation 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 INFN is equal to 22.4%. 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 - $703.821 million for Infinera Corporation - 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 175.451 million for Infinera Corporation 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 Infinera Corporation at the current share price and the inputted number of shares is $0.8 billion.

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