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As of today (2024-04-27), Energy Focus's intrinsic value calculated from the Discounted Earnings model is $-42.81.
Note: Discounted Earnings 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.
Energy Focus'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 (Earnings Based) using Discounted Earnings model for Energy Focus is N/A.
The historical rank and industry rank for Energy Focus's Intrinsic Value: DCF (Earnings Based) or its related term are showing as below:
The historical data trend for Energy Focus's Intrinsic Value: DCF (Earnings 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.
Energy Focus Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Intrinsic Value: DCF (Earnings Based) | Get a 7-Day Free Trial | - | - | - | - | - |
Energy Focus 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 (Earnings Based) | Get a 7-Day Free Trial | - | - | - | - | - |
For the Furnishings, Fixtures & Appliances subindustry, Energy Focus's Price-to-DCF (Earnings Based), along with its competitors' market caps and Price-to-DCF (Earnings 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.
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Energy Focus's Price-to-DCF (Earnings Based) distribution charts can be found below:
* The bar in red indicates where Energy Focus's Price-to-DCF (Earnings Based) falls into.
This is the intrinsic value calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings 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 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 4.66%. 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 = 20%
The Growth Rate in the growth stage is initially set as the default 10-Year EPS without NRI Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year EPS without NRI Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year EPS without NRI 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.
=>
Energy Focus's average EPS without NRI Growth Rate in the past
5 years was 39.00%,
which is no less than 20%. GuruFocus defaults => Growth Rate: 20%
3. Years of Growth Stage: y1 = 10
4. Terminal Growth Rate: g2 = 4%
5. Years of Terminal Growth: y2 = 10
6. EPS without NRI: eps without nri = $-1.370.
GuruFocus DCF calculator is actually a Discounted Earnings calculator, 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.
Energy Focus's Intrinsic Value: DCF (Earnings Based) for today is calculated as:
Intrinsic Value: DCF (Earnings Based) | = | EPS without NRI | * | {[(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+0.2)/(1+0.11) = 1.0810810810811
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694
Intrinsic Value: DCF (Earnings Based) | = | EPS without NRI | * | {[x | + | x^2 | + | ... | + | x^10] | + | x^10 | * | [y | + | y^2 | + | ... | + | y^10]} |
= | EPS without NRI | * | [x | * | (1-x^10) | / | (1-x) | + | x^10 | * | y | * | (1-y^10) | / | (1-y)] | |||||
= | -1.370 | * | 31.2501 | |||||||||||||||||
= | -42.81 |
Margin of Safety % (DCF Earnings Based) | = | (Intrinsic Value: DCF (Earnings Based) | - | Current Price) | / | Intrinsic Value: DCF (Earnings Based) |
= | (-42.81 | - | 1.50) | / | -42.81 | |
= | N/A |
* 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.
Energy Focus (NAS:EFOI) Intrinsic Value: DCF (Earnings Based) Explanation
Unlike valuation methods such as Net Current Asset Value, Tangible Book Value per Share, Graham Number, Median Ratio 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 Discounted Earnings model:
1. The Discounted Earnings model evaluates a company based on its future earnings powerYou 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.
Thank you for viewing the detailed overview of Energy Focus's Intrinsic Value: DCF (Earnings Based) provided by GuruFocus.com. Please click on the following links to see related term pages.
Shou-jang Lee | director | 32000 AURORA RD., SUITE B, SOLON OH 44139 |
Randy Harrison Gianas | officer: VP Operations & Engineering | 32000 AURORA RD., SUITE B, SOLON OH 44139 |
Lesley A. Matt | officer: Chief Executive Officer | 32000 AURORA RD., SUITE B, SOLON OH 44139 |
Warren James Raymond Iii | officer: SVP, GC & Corp. Secretary | TUCKER ELLIS LLP, 925 EUCLID AVE., SUITE 1150, CLEVELAND OH 44115 |
Wen-jeng Chang | director | 32000 AURORA RD., SUITE B, SOLON OH 44139 |
Chiao Chieh Huang | director, 10 percent owner | 32000 AURORA RD., SUITE B, SOLON OH 44139 |
Gina Huang | director, 10 percent owner | C/O ENERGY FOCUS, INC., 32000 AURORA ROAD, SOLON OH 44139 |
Daas Kaj Den | director | EIFELLAAN #3, 5691 GW, SON EN BREUGEL P7 00000 |
Clifford R. Griffin | officer: SVP, Corp. Controller & CAO | 32000 AURORA ROAD, SUITE B, SOLON OH 44139 |
Jeffery Robert Parker | director | ENERGY FOCUS, INC., 32000 AURORA ROAD, SUITE B, SOLON OH 44139 |
Brian J Lagarto | director | 32000 AURORA RD., SUITE B, SOLON OH 44139 |
Gregory S Galluccio | officer: Sr. VP, Product Mgmt & Engin. | 32000 AURORA ROAD, SUITE B, SOLON OH 44139 |
Philip Politziner | director | C/O JENSYN ACQUISTION CORP, 800 WEST MAIN STREET, SUITE 204, FREEHOLD NJ 07728 |
Stephen Socolof | director | C/O EVERSPIN TECHNOLOGIES, INC., 1347 N. ALMA SCHOOL ROAD, SUITE 220, CHANDLER AZ 85224 |
James Tu | director, officer: Executive Chairman & CEO | ENERGY FOCUS, INC., 32000 AURORA ROAD, SOLON OH 44139 |
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