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Sycamore Networks Inc (OTCPK:SCMR)
Intrinsic Value (DCF Projected)
$0.00 (As of Today)

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 in detail here.

As of today, Sycamore Networks Inc's DCF projected intrinsic value is $0.00. The stock price of Sycamore Networks Inc is $0.36. Therefore, Sycamore Networks Inc's Price to Intrinsic Value (DCF Projected) Ratio of today is 0.0.

SCMR' s 10-Year Price to Intrinsic Value (DCF Projected) Range
Min: 0   Max: 0
Current: 0

SCMR's Price to Intrinsic Value (DCF Projected) is ranked higher than
55% of the 755 Companies
in the Global Communication Equipment industry.

( Industry Median: 21.81 vs. SCMR: 0.00 )

Definition

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 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 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


Here Sycamore Networks Inc's FCF(6 year avg) is calculate as

Sycamore Networks Inc Quarterly Data

201010201101201104201107201110201201201204201207201210201301
total_freecashflow -0.90-7.49-4.71-2.18-3.32-0.47-0.11-0.71-5.010.00
200804200807200810200901200904200907200910201001201004201007
total_freecashflow 13.37-7.12-4.09-5.79-2.72-4.36-6.43-3.203.850.75
200704200707200710200801
total_freecashflow 3.644.82-2.201.74

Add all the Free Cash Flow together and divide 6 will get Sycamore Networks Inc's FCF(6 year avg) = $-5.44.

Sycamore Networks Inc's DCF Projected Intrinsic Value for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Jan13)*0.8)/Shares Outstanding
=(9.52035159596*-5.44116666667+70.555*0.8)/28.882
=0.16

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

The growth multiple is capped between 8.35 and 17.74.

Total 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 medium after taking the above ideas into consideration. Learn more here.

Sycamore Networks Inc's Price to DCF Projected Intrinsic Value Ratio for today is calculated as

Price to DCF Projected Intrinsic Value=Share Price/DCF Projected Intrinsic Value
=0.36/0.160729182227
=2.24

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Intrinsic Value (DE), Intrinsic Value (DCF), Free Cash Flow


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Sycamore Networks Inc Annual Data

Jul03Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12
iv_dcf_share 0.000.00-4.32-1.632.6922.6624.8818.6412.8711.27

Sycamore Networks Inc Quarterly Data

Oct10Jan11Apr11Jul11Oct11Jan12Apr12Jul12Oct12Jan13
iv_dcf_share 18.8313.5913.3812.8712.8212.4912.2211.272.70-0.32
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