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The Net-Net Working Capital Per Share of First Solar Inc for the quarter that ended in Mar. 2014 was $4.06

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
=	(1379.227	+	0.75 * 765.912	+	0.5 * 387.05	-	1742.964	-	0)	/	99.51
=	4.06

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

The Tangible Book Value per share of First Solar Inc for the quarter that ended in Mar. 2014 was $44.53

Calculation:

	Tangible Book Value Per Share
=	(Total Equity	-	Preferred Stock	-	Intangibles)	/	Shares Outstanding
=	(4633.389	-	0	-	202.102)	/	99.51
=	44.53

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

The DCF projected intrinsic value of First Solar Inc for today is $43.86

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's DCF Projected Intrinsic Value for today is calculated as

	Intrinsic Value
=	(Growth Multiple	*	Free Cash Flow(6 year avg)	+	Total Equity(Mar14)	*	0.8)	/	Shares Outstanding
=	(13.0482228488	*	58.2045	+	4633.389	*	0.8)	/	101.822
=	43.86

First Solar Inc's Free Cash Flow Growth Multiple is 13.0482228488.

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

The Median P/S Value of First Solar Inc for today is $165.18

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
=	35.22	*	4.69
=	165.18

10-Year Median P/S Ratio is 4.69.
First Solar Inc's revenue per share for the trailing twelve months (TTM) ended in Mar. 2014 was 5.7 (Jun. 2013) + 12.61 (Sep. 2013) + 7.58 (Dec. 2013) + 9.33 (Mar. 2014) = $35.22.

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

The Graham Number of First Solar Inc for the quarter that ended in Mar. 2014 was $63.93

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	*	(4633.389 - 202.102)	*	405.903)	/	99.51
=	63.93

For more information about graham number, visit: Graham Number

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=16.00

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 16.00

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

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=1.40

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 1.40

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.

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=1.80

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 1.80

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

Industry Comparison

Competitors Comparison

Industry Comparison

Competitors Comparison of 10-Year Historical P/B ratios

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

Competitors Comparison of 10-Year Historical Yield