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Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2024-09-20), Ciena's Intrinsic Value: Projected FCF is $29.11. The stock price of Ciena is $58.73. Therefore, Ciena's Price-to-Intrinsic-Value-Projected-FCF of today is 2.0.
The historical rank and industry rank for Ciena's Intrinsic Value: Projected FCF or its related term are showing as below:
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Ciena was 12.64. The lowest was 1.13. And the median was 1.65.
The historical data trend for Ciena's Intrinsic Value: Projected FCF 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.
Ciena Annual Data | |||||||||||||||||||||
Trend | Oct14 | Oct15 | Oct16 | Oct17 | Oct18 | Oct19 | Oct20 | Oct21 | Oct22 | Oct23 | |||||||||||
Intrinsic Value: Projected FCF | Get a 7-Day Free Trial | 23.60 | 34.79 | 41.72 | 32.68 | 32.42 |
Ciena Quarterly Data | ||||||||||||||||||||
Oct19 | Jan20 | Apr20 | Jul20 | Oct20 | Jan21 | Apr21 | Jul21 | Oct21 | Jan22 | Apr22 | Jul22 | Oct22 | Jan23 | Apr23 | Jul23 | Oct23 | Jan24 | Apr24 | Jul24 | |
Intrinsic Value: Projected FCF | Get a 7-Day Free Trial | 30.73 | 32.42 | 33.99 | 31.67 | 29.11 |
For the Communication Equipment subindustry, Ciena's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF 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.
For the Hardware industry and Technology sector, Ciena's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where Ciena's Price-to-Projected-FCF falls into.
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail 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 Stockholders Equity.
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)
In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)
Add all the Free Cash Flow together and divide 6 will get Ciena's Free Cash Flow(6 year avg) = $201.56.
Ciena's Intrinsic Value: Projected FCF for today is calculated as
Intrinsic Value: Projected FCF | = | (Growth Multiple | * | Free Cash Flow (6 year avg) | + | Total Stockholders Equity (Jul24) | * | 0.8) | / | Shares Outstanding (Diluted Average) |
= | (9.5203515959648 | * | 201.5584 | + | 2890.872 | * | 0.8) | / | 145.361 | |
= | 29.11 |
* 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.
Ciena (NYSE:CIEN) Intrinsic Value: Projected FCF Explanation
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
Ciena's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF | = | Share Price | / | Intrinsic Value: Projected FCF |
= | 58.73 | / | 29.111002504937 | |
= | 2.02 |
* 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.
Thank you for viewing the detailed overview of Ciena's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
David M Rothenstein | officer: Sr. VP, General Counsel | 7035 RIDGE ROAD, HANOVER MD 21076 |
Gary B Smith | director, officer: President, CEO | C/O CIENA CORPORATION, 7035 RIDGE ROAD, HANOVER MD 21076 |
Brodie Gage | officer: SVP Global Products & Supply | 2351 ALFRED-NOBEL BLVD, SUITE N-300, SAINT LAURENT A8 H4S 2A9 |
Dino Diperna | officer: SVP Global R&D | 385 TERRY FOX DR, OTTAWA A6 K2K OL1 |
Jason Phipps | officer: SVP Global Sales and Marketing | 7410 RIDGE RD, HANOVER MD 21076 |
Joseph Cumello | officer: SVP, General Mgr. Blue Planet | 7035 RIDGE RD, HANOVER MD 21076 |
Scott Mcfeely | officer: SVP, Networking Platforms | 7035 RIDGE RD, HANOVER MD 21076 |
Mary G Puma | director | AXCELIS TECHNOLOGIES INC., 108 CHERRY HILL DRIVE, BEVERLY MA 01915 |
Andrew C Petrik | officer: VP, CONTROLLER | 7035 RIDGE ROAD, HANOVER MD 21076 |
Sheela Kosaraju | officer: SVP, General Counsel | 43-51 WORSHIP ST, LONDON X0 EC2A 2DX |
Stephen B Alexander | officer: SVP, Chief Technology Officer | C/O CIENA CORPORATION, 7035 RIDGE ROAD, HANOVER MD 21076 |
Rick Hamilton | officer: SVP, Software and Services | 9500 AMBERGIEN, AUSTIN TX 78729 |
Moylan James E Jr | officer: SVP Finance, CFO | CIENA CORPORATION, 7035 RIDGE ROAD, HANOVER MD 21076 |
Judith M Obrien | director | 855 MAUDE AVENUE, MOUNTAIN VIEW CA 94043 |
Thomas Michael Nevens | director | C/O BORLAND SOFTWARE CORPORATION, 20450 STEVENS CREEK BLVD, SUITE 800, CUPERTINO CA 95014 |
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