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Fiberhome Telecommunication Technologies Co Ltd
SSE:600498

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Fiberhome Telecommunication Technologies Co Ltd
SSE:600498
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Price: 47 CNY -2.31% Market Closed
Market Cap: ¥63.8B

DCF Value

DCF Value of one NFLX share under the base-case scenario is 358.99 USD. Compared to the current market price of 935.52 USD, the stock is Overvalued by 43%.

Base-case scenario assumes average annual revenue growth of 8% over the next 5 years, with operating margin gradually improving to 22% by the final year. Terminal growth rate is set at 2%, and the discount rate applied is 9%.

Revenue Growth
5%
Operating Margin
18% 22%
Discount Rate
9%
What is DCF Valuation?
DCF Value
16.34 CNY
Overvaluation 65%
DCF Value
Price
Alpha Spread: by Viktor Kalm
Entry Points by Margin of Safety:
0% MoS
Buy Price:
$358.99
vs Market:
664%
10% MoS
Buy Price:
$323.09
vs Market:
587%
20% MoS
Buy Price:
$287.19
vs Market:
511%
30% MoS
Buy Price:
$251.29
vs Market:
435%
40% MoS
Buy Price:
$215.39
vs Market:
358%
50% MoS
Buy Price:
$179.5
vs Market:
282%

DCF Valuation

Next Actions:
View Full Model
Reverse DCF
Monte Carlo Simulation
What is DCF Valuation?
Forecasting Business Performance
How will Fiberhome Telecommunication Technologies Co Ltd perform in the coming years?
Operating Income
$88B
=
Revenue
$280B
Expenses
$192B
Deriving Free Cash Flow
How much real cash is Fiberhome Telecommunication Technologies Co Ltd expected to generate each year?
$88B
Operating Income
for next 5 years
$68B
Free Cash Flow
for next 5 years
Free Cash Flow
$68B
=
Operating Income
$88B
+
D&A
$6.5B
+
SBC
$6.5B
CapEx
$6.5B
Change in Working Capital
$6.5B
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Operating Income 13B 16B 18B 20B 21B 88B
+ Depreciation & Amortization 1.1B 1.2B 1.3B 1.4B 1.5B 6.5B
+ Stock-Based Compensation 1.1B 1.2B 1.3B 1.4B 1.5B 6.5B
- Capital Expenditures 1.1B 1.2B 1.3B 1.4B 1.5B 6.5B
- Change in Working Capital 1.1B 1.2B 1.3B 1.4B 1.5B 6.5B
= Free Cash Flow 9B 12B 14B 16B 17B 68B
Discounting Free Cash Flow
Converting future cash flows into today’s value
$68B
Free Cash Flow
for next 5 years
$43.6B
Discounted FCF
for next 5 years
Discounted FCF
$43.6B
=
Free Cash Flow
$68B
Time & Risk Cost
24.4B
1 Year 2 Years 3 Years 4 Years 5 Years
Free Cash Flow $9B $12B $14B $16B $17B
Discounted Free Cash Flow $8.2B $9.6B $9.7B $8.8B $7.3B
What Is Today's $1 Worth? $0.91 $0.80 $0.69 $0.55 $0.43
Calculating Terminal Value
Estimating value beyond forecast period
Computing Enterprise Value
Estimating value beyond forecast period
$330B
Enterprise Value
Enterprise Value
$330B
=
Discounted FCF
$43.6B
+
Terminal Value
$286.4B
Value Decomposition
Terminal Value
86%
Discounted FCF
14%
Help me with step
Forecast Period:
0 2Y 4Y 6Y 8Y 10Y 12Y 14Y 16Y 18Y 20Y
Revenue Growth:
Alpha Spread Estimate
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Operating Margin:
Alpha Spread Estimate
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
D&A as % of Revenue:
0% 10% 20% 30% 40% 50%
SBC as % of Revenue:
0% 10% 20% 30% 40% 50%
CapEx as % of Revenue:
0% 10% 20% 30% 40% 50%
Change in Working Capital:
0% 10% 20% 30% 40% 50%
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Next

Reverse DCF

Market Expectations: Unrealistic

To justify the current price, Netflix Inc. must grow revenue by 36% annually over the next 5 years, which is outside the range of what's considered realistic.

Revenue Growth Rate DCF Value
Realistic Range
Realistic Low: 10%
$601.26
Overvalued by 45%
Historical: 21%
$758.26
Overvalued by 36%
Current DCF: 23%
$789.44
Overvalued by 32%
Wall Street: 24%
$831.32
Overvalued by 28%
Realistic High: 30%
$900.12
Overvalued by 12%
Implied by Price: 36%
$977.59
Matches Stock Price
What is Reverse DCF?
Below current price
Above current price

Monte Carlo Simulation

Chance Undervalued/Overvalued
Get a glimpse into the future
What could happen if things go really well?
How valuable could the stock become?
What could happen to this stock?
Is this a good deal - or not?
Start Simulation
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