Advanced Energy Industries (Advanced Energy Industries) Intrinsic Value: DCF (Dividends Based) : $50.58 (As of Apr. 30, 2024)

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What is Advanced Energy Industries Intrinsic Value: DCF (Dividends Based)?

As of today (2024-04-30), Advanced Energy Industries's intrinsic value calculated from the Discounted Dividend model is $50.58.

Note: Discounted Dividend model is only suitable for companies who have a consistant distribution history. If the company's dividends does not remain steady over a long period, results may not be accurate due to the low consistency. The model is also only suitable for predictable companies (Business Predictability Rank higher than 1-Star) with dividend payments. If the company's Predictability Rank is 1-Star or Not Rated, or if the company does not pay dividend, the data will not be stored into our database.

Advanced Energy Industries's Predictability Rank is 4-Stars.

Margin of Safety % (DCF Dividends Based) using Discounted Dividend Model for Advanced Energy Industries is -89.48%.

The historical rank and industry rank for Advanced Energy Industries's Intrinsic Value: DCF (Dividends Based) or its related term are showing as below:

AEIS' s Price-to-DCF (Dividends Based) Range Over the Past 10 Years
Min: 1.17 Med: 1.58 Max: 1.99
Current: 1.89

During the past 13 years, the highest Price-to-Intrinsic-Value-DCF (Dividends Based) Ratio of Advanced Energy Industries was 1.99. The lowest was 1.17. And the median was 1.58.

AEIS's Price-to-DCF (Dividends Based) is ranked worse than
73.11% of 409 companies
in the Industrial Products industry
Industry Median: 1.11 vs AEIS: 1.89

Advanced Energy Industries Intrinsic Value: DCF (Dividends Based) Historical Data

The historical data trend for Advanced Energy Industries's Intrinsic Value: DCF (Dividends 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.

Advanced Energy Industries Intrinsic Value: DCF (Dividends Based) Chart

Advanced Energy Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Intrinsic Value: DCF (Dividends Based)

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73.04

54.72

Advanced Energy Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Intrinsic Value: DCF (Dividends Based)	Get a 7-Day Free Trial															73.04	73.04	69.33	55.36	54.72

Competitive Comparison of Advanced Energy Industries's Intrinsic Value: DCF (Dividends Based)

For the Electrical Equipment & Parts subindustry, Advanced Energy Industries's Price-to-DCF (Dividends Based), along with its competitors' market caps and Price-to-DCF (Dividends 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.

Advanced Energy Industries's Price-to-DCF (Dividends Based) Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Advanced Energy Industries's Price-to-DCF (Dividends Based) distribution charts can be found below:

* The bar in red indicates where Advanced Energy Industries's Price-to-DCF (Dividends Based) falls into.

Advanced Energy Industries Intrinsic Value: DCF (Dividends Based) Calculation

This is the intrinsic value calculated from the Discounted Dividend Model with default parameters. The calculation method is the same as Discounted Cash Flow model except adjusted dividend are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called 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 DDM 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 4.68%. 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. Dividend Growth Rate in the growth stage: g1 = 5%
The Growth Rate in the growth stage is initially set as the default 10-Year Dividend Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year Dividend Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year Dividend Growth Rate.
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.
=> Advanced Energy Industries's average Dividend Growth Rate in the past 3 years was 0.00%, which is less than 5%. GuruFocus defaults => Growth Rate: 5%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = $4.383.
GuruFocus uses adjusted dividends per share by default to ensure that the valuation reflects the total value of the company, as the actual dividend is only a portion of the total value.

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

Advanced Energy Industries's Intrinsic Value: DCF (Dividends Based) for today is calculated as:

Intrinsic Value: DCF (Dividends Based)	=	Dividends 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+0.05)/(1+0.11) = 0.94594594594595
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

Intrinsic Value: DCF (Dividends Based)

Dividends per Share

{[x

x^2

...

x^10]

x^10

y^2

...

y^10]}

Dividends per Share

(1-x^10)

(1-x)

x^10

(1-y^10)

(1-y)]

4.383

11.5406

50.58

Margin of Safety % (DCF Dividends Based)	=	(Intrinsic Value: DCF (Dividends Based)	-	Current Price)	/	Intrinsic Value: DCF (Dividends Based)
	=	(50.58	-	95.84)	/	50.58
	=	-89.48 %

Advanced Energy Industries (NAS:AEIS) Intrinsic Value: DCF (Dividends Based) Explanation

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

Be Aware

What you need to know about Discounted Dividends model:

1. The Discounted Dividends model evaluates a company based on its future dividends distribution power
2. Dividend growth is taken into account; therefore a company with a higher dividend growth rate 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 with consistently steady dividends distributed.
4. The Discounted Dividends model works poorly for inconsistent dividends distributor like high growth companies.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less dividends distributed.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) and Intrinsic Value: DCF (Dividends 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.

Advanced Energy Industries Intrinsic Value: DCF (Dividends Based) Related Terms

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

Advanced Energy Industries (Advanced Energy Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Advanced Energy Industries Inc (NAS:AEIS) » Definitions » Intrinsic Value: DCF (Dividends Based)

Comparable Companies

Traded in Other Exchanges

AVX:Germany

Address

1595 Wynkoop Street, Suite 800, Denver, CO, USA, 80202

Website

https://www.advancedenergy.com

Advanced Energy Industries Inc provides precision power-conversion measurement and control solutions that transform power into various forms for use in manufacturing and industrial equipment and applications. The firm serves original equipment manufacturers and end customers in the semiconductor, flat panel display, solar panel, and other industrial capital equipment markets. Products include thin-film power-conversion systems, which control and modify raw electrical power into a customizable, predictable power source, and power control modules, which control and measure temperature during manufacturing cycles. A majority of the firm's revenue is generated in the United States, with the rest primarily from Asia and Europe.

Executives

Anne Delsanto	director	1133 INNOVATION WAY, SUNNYVALE CA 94089
Ronald C Foster	director	8000 S FEDERAL WAY, MS 1-557, BOISE ID 83716
Paul R Oldham	officer: EVP, CFO	1625 SHARP POINT DRIVE, FORT COLLINS CO 80525
Lanesha Minnix	director	TWO LAKESIDE COMMONS, BUILDING TWO, 980 HAMMOND DRIVE, SUITE 500, ATLANTA GA 30328
Tina Donikowski	director	1625 SHARP POINT DRIVE, FORT COLLINS CO 80525
John Donaghey	officer: EVP, Global Sales	1595 WYNKOOP STREET, SUITE 800, DENVER CO 80202
Brian Shirley	director	8000 S FEDERAL WAY, MS 1-557, BOISE ID 83716
Elizabeth Karpinski Vonne	officer: EVP, General Counsel	1595 WYNKOOP STREET, SUITE 800, DENVER CO 80202
Eduardo Bernal Acebedo	officer: EVP and COO	1595 WYNKOOP STREET, SUITE 800, DENVER CO 80202
Reed David	director	6501 WILLIAM CANNON DRIVE WEST, AUSTIN TX 78735
Stephen Douglas Kelley	officer: President and CEO	1900 S. PRICE ROAD, CHANDLER AZ 85286
Yuval Wasserman	officer: EVP, Sales, Service & Mktg	1625 SHARP POINT DRIVE, FORT COLLINS CO 80525
Dana Edward Huth	officer: CHIEF REVENUE OFFICER	1595 WYNKOOP STREET, SUITE 800, DENVER CO 80202
Thomas O Mcgimpsey	officer: EVP Gen Counsel & Corp Sec	380 INTERLOCKEN CRESCENT, BROOMFIELD CO 80021
Neil David Brinker	officer: EVP, COO	1625 SHARP POINT DRIVE, FORT COLLINS CO 80525