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Financial Strength Rank - Competitive Comparison                                          Profitability Rank - Competitive Comparison

TickerCompany NameFinancial StrengthMarket Cap (M)
FSLRFirst Solar Inc
8/10
7,182.85
RGSEReal Goods Solar Inc
8/10
75.96
SPWRSunPower Corp
6/10
4,930.57
SPIRSpire Corp
4/10
3.87
SLTDSolar3D Inc
4/10
42.87
ASTIAscent Solar Technologies Inc
4/10
25.53
WESTAndalay Solar Inc
3/10
3.86
BSRCBioSolar Inc
2/10
1.60
SSOLSunvalley Solar Inc
0/10
1.52
SLRXSolar Acquisition Corporation
0/10
0.90
GWYTGreenway Energy
0/10
0.00
TickerCompany NameProfitability RankMarket Cap (M)
FSLRFirst Solar Inc
6/10
7,182.85
SPWRSunPower Corp
5/10
4,930.57
WESTAndalay Solar Inc
5/10
3.86
SLTDSolar3D Inc
3/10
42.87
BSRCBioSolar Inc
3/10
1.60
RGSEReal Goods Solar Inc
3/10
75.96
SPIRSpire Corp
2/10
3.87
ASTIAscent Solar Technologies Inc
1/10
25.53
SSOLSunvalley Solar Inc
0/10
1.52
SLRXSolar Acquisition Corporation
0/10
0.90
GWYTGreenway Energy
0/10
0.00

Valuation for First Solar Inc

First Solar Inc is more suitable for Asset Based valuation methods. This includes 1) Net-Net Working Capital Per Share 2) Tangible Book Value Per Share. The Net-Net Working Capital Per Share of First Solar Inc for the quarter that ended in Jun. 2014 was $1.99. The Tangible Book Value Per Share of First Solar Inc for the quarter that ended in Jun. 2014 was $44.61.

Projected FCF and Graham Number are the combination valuation methods of Asset and Earnings Power. The Projected FCF: DCF Projected Intrinsic Value of First Solar Inc for today is $45.79. The Graham Number of First Solar Inc for the quarter that ended in Jun. 2014 was $61.46.

First Solar Inc Net-Net Working Capital

The Net-Net Working Capital Per Share of First Solar Inc for the quarter that ended in Jun. 2014 was $1.99

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company’s accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt. This is a conservative way of estimating the company’s value.

Calculation:

    Net-Net Working Capital
    =(CashAndCashEquivalents+0.75 * Acct. Rec.+0.5 * Inventory-Total Liabilities-Preferred Stock)/Shares Outstanding
    =(1348.867+0.75 * 802.811+0.5 * 385.247-1944.06-0)/100.12
    =1.99

For more information about NNWC, visit: Net-Net Working Capital Per Share

First Solar Inc Tangible Book Value Per Share

The Tangible Book Value per share of First Solar Inc for the quarter that ended in Jun. 2014 was $44.61

Calculation:

    Tangible Book Value Per Share
    =(Total Equity-Preferred Stock-Intangibles)/Shares Outstanding
    =(4667.955-0-201.92)/100.12
    =44.61

Since intangibles such as goodwill cannot be sold when the company liquidates, tangible book value per share is considered more accurate in reflecting how much shareholders will receive when the company liquidates.

For more information about tangible book value per share, visit: Tangible Book Value Per Share

First Solar Inc Projected FCF: DCF Projected Intrinsic Value

The DCF projected intrinsic value of First Solar Inc for today is $45.79

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value (DCF), or Discounted Earnings (DCE) Intrinsic Value (DE) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Discounted Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of total equity.

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + 0.8*Total Equity(most recent))/Shares Outstanding

In the case of negative total equity, the following formula is used (see the Total Equity section for the reason):

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + Total Equity(most recent)/0.8)/Shares Outstanding


Calculation:

Here First Solar Inc's FCF(6 year avg) is calculate as

First Solar Inc Quarterly Data
201203201206201209201212201303201306201309201312201403201406
total_freecashflow-141271-35288-5137306136-36956
200909200912201003201006201009201012201103201106201109201112
total_freecashflow114345-75-57110138-213-424-21-107
200809200812200903200906
total_freecashflow4275-23-40

Add all the Free Cash Flow together and divide 6 will get First Solar Inc FCF(6 year avg) = $84.38

First Solar Inc's DCF Projected Intrinsic Value for today is calculated as

    Intrinsic Value
    =(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Jun14)*0.8)/Shares Outstanding
    =(10.993856732*84.3798333333+4667.955*0.8)/101.814
    =45.79

First Solar Inc's Free Cash Flow Growth Multiple is 10.993856732.

For more information about Projected FCF Intrinsic Value, visit: Intrinsic Value (DCF Projected)

First Solar Inc Median P/S Value

The Median P/S Value of First Solar Inc for today is $162.49

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

Calculation:

    Median P/S Value
    =Revenue Per Share (TTM)*10-Year Median P/S Ratio
    =34.87*4.66
    =162.49

10-Year Median P/S Ratio is 4.66.
First Solar Inc's revenue per share for the trailing twelve months (TTM) ended in Jun. 2014 was 12.61 (Sep. 2013) + 7.58 (Dec. 2013) + 9.33 (Mar. 2014) + 5.35 (Jun. 2014) = $34.87.

For more information about median p/s value, visit: Median P/S Value

First Solar Inc Graham Number

The Graham Number of First Solar Inc for the quarter that ended in Jun. 2014 was $61.46

Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.

Calculation:

    Graham Number
    =SquareRoot of (22.5*(Total Equity - Intangibles)*Net Income (Continuing Operations))/Shares Outstanding
    =SquareRoot of (22.5*(4667.955 - 201.92)*376.833)/100.12
    =61.46

For more information about graham number, visit: Graham Number

Warning Signs for First Solar Inc

GuruFocus has conducted a thorough checkup on the financials and performances of First Solar Inc, and found 2 severe warning signs and 3 medium warning signs . These warning signs do not necessarily mean you should not invest in the stock. But you should be aware of them before you invest. Further reading: New Feature Announcement: The Warning Signs.

First Solar Inc Historical Price and P/E Range

Valuation bands displayed:

  1. Upper red line: P/E=460.6
  2. Lower red line: P/E=5
  3. Green line: price. Current P/E ratio=19.20

Historically First Solar Inc (FSLR) stock has been traded between P/E ratios of 5 and 460.6. If the stock had always been traded at P/E of 5, its stock prices would have been where the lower red line is. Similarly, if the stock had always been traded at 460.6, its stock prices would have been where the upper red line is. The actual stock prices bounces between these two red lines.

Currently, the P/E ratio of First Solar Inc is 19.20

As always, it is always better if the stock prices is close to the lower red line, which implies that the stock is traded at the lower end of valuation.

For more information about this page, visit: GuruFocus Valuation Charts Now Support iPad/iPhone

First Solar Inc Historical Price and P/B Range

Valuation bands displayed:

  1. Upper red line: P/B=22.3
  2. Lower red line: P/B=0.3
  3. Green line: price. Current P/B ratio=1.50

Historically First Solar Inc (FSLR) stock has been traded between P/B ratios of 0.3 and 22.3. If the stock had always been traded at P/B of 0.3, its stock prices would have been where the lower red line is. Similarly, if the stock had always been traded at 22.3, its stock prices would have been where the upper red line is. The actual stock prices bounces between these two red lines.

Currently, the P/B ratio of First Solar Inc is 1.50

As always, it is always better if the stock prices is close to the lower red line, which implies that the stock is traded at the lower end of valuation.

You can find the stocks that are traded at close to its historical low P/B valuation here.

 

First Solar Inc Historical Price and P/S Range

Valuation bands displayed:

  1. Upper red line: P/S=60.5
  2. Lower red line: P/S=0.4
  3. Green line: price. Current P/S ratio=2.10

Historically First Solar Inc (FSLR) stock has been traded between P/S ratios of 0.4 and 60.5. If the stock had always been traded at P/S ratio of 0.4, its stock prices would have been where the lower red line is. Similarly, if the stock had always been traded at 60.5, its stock prices would have been where the upper red line is. The actual stock prices bounces between these two red lines.

Currently, the P/S ratio of First Solar Inc is 2.10

As always, it is always better if the stock prices is close to the lower red line, which implies that the stock is traded at the lower end of valuation.

You can find the stocks that are traded at close to its historical low P/S valuation here.

 

Competitors Comparison of 10-Year Historical P/E ratios

Competitors Comparison

Symbol P/E(ttm) ratio P/E(ttm) ratio 10-Y Range Chart
FSLR 19.20
5.39
386.17
SPWR 27.20
9.05
5480.00
SOL 0.00
1.57
28.49

Industry Comparison

Industry Name FSLR P/E(ttm) ratio Rank # of Companies Chart
Solar Top 12% 164

Competitors Comparison of 10-Year Historical P/S ratios

Competitors Comparison

Symbol P/S ratio P/S ratio 10-Y Range Chart
FSLR 2.10
0.33
51.11
SPWR 2.40
0.17
16.17
SOL 0.20
0.11
4.58

Industry Comparison

Industry Name FSLR P/S ratio Rank # of Companies Chart
Solar Top 31% 164

Competitors Comparison of 10-Year Historical P/B ratios

Competitors Comparison

Symbol P/B ratio P/B ratio 10-Y Range Chart
FSLR 1.50
0.30
21.25
SPWR 3.60
0.39
12.96
SOL 2.30
0.20
6.33

Industry Comparison

Industry Name FSLR P/B ratio Rank # of Companies Chart
Solar Top 13% 164

Competitors Comparison of 10-Year Historical Price to Free Cash Flow ratios

Competitors Comparison

Symbol Price to Free Cash Flow ratio Price to Free Cash Flow ratio 10-Y Range Chart
FSLR 54.80
4.27
5418.00
SPWR 0.00
20.02
188.83
SOL 0.00
2.60
11.31

Industry Comparison

Industry Name FSLR Price to Free Cash Flow ratio Rank # of Companies Chart
Solar Bottom 49% 164

Competitors Comparison of 10-Year Historical Yield

Competitors Comparison

Symbol Historical Yield Historical Yield 10-Y Range Chart
FSLR 0.00
SPWR 0.00
SOL 0.00

Industry Comparison

Industry Name FSLR Historical Yield Rank # of Companies Chart
Solar Top 50% 164

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FA_suitmoney
ReplyFA_suitmoney - 4 months ago
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