DCF Tool

CIEN

CIENA Corp. – Telephone Apparatus Manufacturing
Ciena is a networking systems, services and software company. The Company provides solutions that help its customers create the Adaptive Network™ in response to the constantly changing demands of their end-users. By delivering best-in-class networking technology through high-touch consultative relationships, the Company builds the world's most agile networks with automation, openness and scale.
Analysis Results
Intrinsic Value $382.89
Latest Price $50.71
Relative Value 87% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 20.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 20.8%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 0.965 0.933
2024 1.17 1.09
2025 1.41 1.27
2026 1.7 1.49
2027 2.05 1.73
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 61.6 billion. This corresponds to a present value of 50.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.51 billion. Adding in the terminal value gives a total present value of 56.8 billion.

There are presently 148.0 million outstanding shares, so the intrinsic value per share is 382.89.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,385,896,000
Current Cash 1,148,341,000
Current Liabilities 1,040,583,000
Current Debt 10,688,000
Non-Cash Working Capital (NCWC) 1,207,660,000
Change in NCWC 521,263,000
EBIT 257,230,000
Tax Provision 29,603,000
Depreciation and Amortization 140,203,000
Capital Expenditure -90,818,000
Unlevered Free Cash Flow 786,154,322
Current Assets 3,188,906,000
Current Cash 1,604,029,000
Current Liabilities 909,030,000
Current Debt 10,550,000
Non-Cash Working Capital (NCWC) 686,397,000
Change in NCWC 65,464,000
EBIT 527,493,000
Tax Provision -37,445,000
Depreciation and Amortization 132,266,000
Capital Expenditure -79,550,000
Unlevered Free Cash Flow 645,673,000
Current Assets 2,611,159,000
Current Cash 1,239,291,000
Current Liabilities 760,701,000
Current Debt 9,766,000
Non-Cash Working Capital (NCWC) 620,933,000
Change in NCWC 89,292,000
EBIT 513,647,000
Tax Provision 94,670,000
Depreciation and Amortization 132,527,000
Capital Expenditure -82,667,000
Unlevered Free Cash Flow 546,151,805
Current Assets 2,381,802,000
Current Cash 1,013,985,000
Current Liabilities 845,940,000
Current Debt 9,764,000
Non-Cash Working Capital (NCWC) 531,641,000
Change in NCWC 235,899,000
EBIT 374,674,000
Tax Provision 59,756,000
Depreciation and Amortization 122,712,000
Capital Expenditure -62,579,000
Unlevered Free Cash Flow 599,218,980
Current Assets 2,142,602,000
Current Cash 894,404,000
Current Liabilities 963,003,000
Current Debt 10,547,000
Non-Cash Working Capital (NCWC) 295,742,000
Change in NCWC -109,245,000
EBIT 253,196,000
Tax Provision 493,471,000
Depreciation and Amortization 110,020,000
Capital Expenditure -67,616,000
Unlevered Free Cash Flow -307,116,000
Current Assets 2,006,311,000
Current Cash 919,646,000
Current Liabilities 1,037,743,000
Current Debt 356,065,000
Non-Cash Working Capital (NCWC) 404,987,000
Change in NCWC 97,641,000
EBIT 238,655,000
Tax Provision -1,105,827,000
Depreciation and Amortization 122,902,000
Capital Expenditure -94,600,000
Unlevered Free Cash Flow 364,598,000
Current Assets 2,013,192,000
Current Cash 1,052,863,000
Current Liabilities 891,862,000
Current Debt 238,879,000
Non-Cash Working Capital (NCWC) 307,346,000
Change in NCWC 28,825,000
EBIT 165,715,000
Tax Provision 14,134,000
Depreciation and Amortization 141,692,000
Capital Expenditure -107,185,000
Unlevered Free Cash Flow 202,037,430
Current Assets 1,864,210,000
Current Cash 926,078,000
Current Liabilities 667,034,000
Current Debt 7,423,000
Non-Cash Working Capital (NCWC) 278,521,000
Change in NCWC -104,459,000
EBIT 134,613,000
Tax Provision 12,097,000
Depreciation and Amortization 135,767,000
Capital Expenditure -62,109,000
Unlevered Free Cash Flow 35,287,616
Current Assets 1,693,190,000
Current Cash 726,925,000
Current Liabilities 781,136,000
Current Debt 197,851,000
Non-Cash Working Capital (NCWC) 382,980,000
Change in NCWC 73,699,000
EBIT 46,053,000
Tax Provision 13,964,000
Depreciation and Amortization 112,767,000
Capital Expenditure -48,216,000
Unlevered Free Cash Flow 184,303,000
Current Assets 1,395,802,000
Current Cash 471,466,000
Current Liabilities 615,055,000
Current Debt 0
Non-Cash Working Capital (NCWC) 309,281,000
Change in NCWC 54,852,000
EBIT 5,394,000
Tax Provision 5,240,000
Depreciation and Amortization 127,007,000
Capital Expenditure -43,814,000
Unlevered Free Cash Flow 143,439,000
Current Assets 1,415,690,000
Current Cash 692,501,000
Current Liabilities 684,970,000
Current Debt 216,210,000
Non-Cash Working Capital (NCWC) 254,429,000
Change in NCWC -83,020,000
EBIT -71,992,000
Tax Provision 9,322,000
Depreciation and Amortization 133,596,000
Capital Expenditure -48,098,000
Unlevered Free Cash Flow -69,514,000

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