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SunEdison (SunEdison) Intrinsic Value: DCF (FCF Based) : $ (As of May. 31, 2024)


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What is SunEdison Intrinsic Value: DCF (FCF Based)?

As of today (2024-05-31), SunEdison's intrinsic value calculated from the Discounted Cash Flow model is $.

Note: Discounted Cash Flow model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

SunEdison's Predictability Rank is 1-Star. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.

Margin of Safety (FCF Based) using Discounted Cash Flow model for SunEdison is

The industry rank for SunEdison's Intrinsic Value: DCF (FCF Based) or its related term are showing as below:

SDSNQ.PFD's Price-to-DCF (FCF Based) is not ranked *
in the Semiconductors industry.
Industry Median: 1.86
* Ranked among companies with meaningful Price-to-DCF (FCF Based) only.

SunEdison Intrinsic Value: DCF (FCF Based) Historical Data

The historical data trend for SunEdison's Intrinsic Value: DCF (FCF Based) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

SunEdison Intrinsic Value: DCF (FCF Based) Chart

SunEdison Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Intrinsic Value: DCF (FCF Based)
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SunEdison Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
Intrinsic Value: DCF (FCF Based) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Competitive Comparison of SunEdison's Intrinsic Value: DCF (FCF Based)

For the Solar subindustry, SunEdison's Price-to-DCF (FCF Based), along with its competitors' market caps and Price-to-DCF (FCF Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


SunEdison's Price-to-DCF (FCF Based) Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, SunEdison's Price-to-DCF (FCF Based) distribution charts can be found below:

* The bar in red indicates where SunEdison's Price-to-DCF (FCF Based) falls into.



SunEdison Intrinsic Value: DCF (FCF Based) Calculation

This is the intrinsic value calculated from the Discounted Cash Flow model with default parameters. In a discounted cash flow model, the future cash flow is estimated based on a cash flow growth rate and a discount rate. The cash flow of the future is discounted to its current value at the discount rate. All of the discounted future cash flow is added together to get the current intrinsic value of the company.

Usually a two-stage model is used when calculating a stock's intrinsic value using a discounted cash flow model. The first stage is called the growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DCF calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.51%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Growth Rate in the growth stage: g1 = %
The Growth Rate in the growth stage is initially set as the default 10-Year FCF Growth Rate (Per Share). In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year FCF Growth Rate (Per Share). If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year FCF Growth Rate (Per Share).
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=>

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Years of Terminal Growth: y2 = 10

6. Free Cash Flow per Share: fcf = $.
However, GuruFocus DCF calculator is actually a Discounted Earnings calculator, the EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.

All of the default settings can be changed and the results are calculated automatically.

SunEdison's Intrinsic Value: DCF (FCF Based) for today is calculated as

Intrinsic Value: DCF (FCF Based)=Free Cash Flow per Share*{[(1+g1)/(1+d)+(1+g1)^2/(1+d)^2+...+(1+g1)^10/(1+d)^10]
+(1+g1)^10/(1+d)^10*[(1+g2)/(1+d)+(1+g2)^2/(1+d)^2+...+(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+)/(1+0.11) =
and y = (1+g2)/(1+d) = (1+)/(1+0.11) =

Intrinsic Value: DCF (FCF Based)=Free Cash Flow per Share*{[x+x^2+...+x^10]+x^10*[y+y^2+...+y^10]}
=Free Cash Flow per Share*[x*(1-x^10)/(1-x)+x^10*y*(1-y^10)/(1-y)]
=*
=

Margin of Safety (FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(-0.01)/

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


SunEdison  (OTCPK:SDSNQ.PFD) Intrinsic Value: DCF (FCF Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Cash Flow model evaluates the companies based on their future earnings power instead of their assets.


Be Aware

What you need to know about the DCF model:

1. The DCF model evaluates a company based on its future earnings power
2. Growth is taken into account; therefore a faster growth company is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies that have relatively consistent performance.
4. The DCF model works poorly for inconsistent performers such as cyclicals.
5. What discount rate should you use? Your expected return from the investment is a good discount rate assumption.
6. A larger margin of safety should be required for companies with less predictable businesses.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.


SunEdison Intrinsic Value: DCF (FCF Based) Related Terms

Thank you for viewing the detailed overview of SunEdison's Intrinsic Value: DCF (FCF Based) provided by GuruFocus.com. Please click on the following links to see related term pages.


SunEdison (SunEdison) Business Description

Industry
Traded in Other Exchanges
N/A
Address
MEMC Electronic Materials produces silicon wafers that are the basic materials used by chipmakers to fabricate semiconductors. The company operates manufacturing facilities in Europe, Japan, Malaysia, South Korea, Taiwan, and the United States. Customers include manufacturers of computer memory and microprocessors.
Executives
Strategic Value Partners, Llc 10 percent owner 100 WEST PUTNAM AVENUE, GREENWICH CT 06830
Svp Special Situations Iv Llc 10 percent owner C/O STRATEGIC VALUE PARTNERS, LLC, 100 WEST PUTNAM AVENUE, GREENWICH CT 06830
Svp Special Situations Iii-a Llc 10 percent owner 100 WEST PUTNAM AVENUE, GREENWICH CT 06830
Victor Khosla 10 percent owner 100 WEST PUTNAM AVENUE, GREENWICH CT 06830
Svp Special Situations Iii Llc 10 percent owner 100 WEST PUTNAM AVENUE, GREENWICH CT 06830
Ilan Daskal officer: EVP & CFO Designee 1000 ALFRED NOBEL DRIVE, HERCULES CA 94547
Claire Gogel director C/O SUNEDISON, INC., 13736 RIVERPORT DRIVE, SUITE 180, MARYLAND HEIGHTS MO 63043
Daley Clayton C Jr director C/O THE PROCTER & GAMBLE COMPANY,, ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Georganne Proctor director 1 BELVEDERE PLACE, SUITE 300, MILL VALLEY CA 94941
Emmanuel T Hernandez director C/O MEMC ELECTRONIC MATERIALS, INC., P O BOX 8, ST. PETERS MO 63376
Peter Blackmore director UTSTARCOM, INC., 1275 HARBOR BAY PARKWAY, ALAMEDA CA 94502
David A Ranhoff officer: SVP; President Solar Materials MEMC ELECTRONIC MATERIALS, 501 PEARL DRIVE, ST. PETERS MO 63366
Shaker Sadasivam other: CEO & Pres. SSL P O BOX 8, SAINT PETERS MO 63376
Steven Vincent Tesoriere director C/O MEMC ELECTRONIC MATERIALS, INC., 501 PEARL DRIVE, ST. PETERS MO 63376
Marshall C Turner director 220 MONTGOMERY ST, PENTHOUSE 10, SAN FRANCISCO CA 94104

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