Ciena Corp Valuation
| CIEN Stock | USD 43.92 0.36 0.83% |
At this time, the firm appears to be undervalued. Ciena Corp shows a prevailing Real Value of $45.53 per share. The current price of the firm is $43.92. Our model approximates the value of Ciena Corp from analyzing the firm fundamentals such as profit margin of 0.05 %, and Return On Equity of 0.0792 as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Ciena Corp's valuation include:
Price Book 2.2555 | Enterprise Value 6.5 B | Enterprise Value Ebitda 12.834 | Price Sales 1.5097 | Forward PE 18.7617 |
Undervalued
Today
Please note that Ciena Corp's price fluctuation is very steady at this time. Calculation of the real value of Ciena Corp is based on 3 months time horizon. Increasing Ciena Corp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Ciena Corp is useful when determining the fair value of the Ciena stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Ciena Corp. Since Ciena Corp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Ciena Stock. However, Ciena Corp's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 43.92 | Real 45.53 | Target 59.27 | Hype 43.56 |
The real value of Ciena Stock, also known as its intrinsic value, is the underlying worth of Ciena Corp Company, which is reflected in its stock price. It is based on Ciena Corp's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Ciena Corp's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Ciena Corp's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Ciena Corp helps investors to forecast how Ciena stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Ciena Corp more accurately as focusing exclusively on Ciena Corp's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Ciena Corp's intrinsic value based on its ongoing forecasts of Ciena Corp's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Ciena Corp's closest peers. When choosing an evaluation method for Ciena Corp, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Ciena Corp Investments |
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Ciena Valuation Trend
Knowing Ciena Corp's actual value is paramount for traders to make sound investment determinations. Ciena Corp's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Ciena Corp's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Ciena Corp's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Ciena Market Cap
Ciena Corp is number one stock in market capitalization category among related companies. Market capitalization of Information Technology industry is currently estimated at about 14.46 Billion. Ciena Corp totals roughly 6.3 Billion in market capitalization claiming about 44% of equities under Information Technology industry.Ciena Corp Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Ciena Corp's current stock value. Our valuation model uses many indicators to compare Ciena Corp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Ciena Corp competition to find correlations between indicators driving Ciena Corp's intrinsic value. More Info.Ciena Corp is rated second in price to earning category among related companies. It is rated second in price to book category among related companies fabricating about 0.07 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Ciena Corp is roughly 15.27 . As of the 23rd of April 2024, Price To Book Ratio is likely to drop to 2.30. Comparative valuation analysis is a catch-all model that can be used if you cannot value Ciena Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ciena Corp's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Ciena Corp's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Ciena Corp's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Ciena Corp and how it compares across the competition.
About Ciena Corp Valuation
The stock valuation mechanism determines the current worth of Ciena Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Ciena Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Ciena Corp based exclusively on its fundamental and basic technical indicators. By analyzing Ciena Corp's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Ciena Corp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Ciena Corp. We calculate exposure to Ciena Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Ciena Corp's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.2 B | 2.3 B | |
| Pretax Profit Margin | 0.13 | 0.14 | |
| Operating Profit Margin | 0.14 | 0.14 | |
| Net Profit Margin | 0.10 | 0.11 | |
| Gross Profit Margin | 0.47 | 0.32 |
8 Steps to conduct Ciena Corp's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Ciena Corp's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Ciena Corp's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Ciena Corp's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Ciena Corp's revenue streams: Identify Ciena Corp's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Ciena Corp's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Ciena Corp's growth potential: Evaluate Ciena Corp's management, business model, and growth potential.
- Determine Ciena Corp's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Ciena Corp's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Ciena Corp Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Ciena Corp does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 149.4 M | |
| Quarterly Earnings Growth Y O Y | -0.333 | |
| Forward Price Earnings | 18.7617 |
Ciena Corp Current Valuation Indicators
Valuation refers to the process of determining the present value of Ciena Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Ciena we look at many different elements of the entity such as Ciena's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Ciena Corp's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Ciena Corp's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Ciena Corp, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Ciena Corp's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Ciena Corp's worth.When determining whether Ciena Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ciena Corp's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ciena Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ciena Corp Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Ciena Corp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income. To learn how to invest in Ciena Stock, please use our How to Invest in Ciena Corp guide.Note that the Ciena Corp information on this page should be used as a complementary analysis to other Ciena Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Complementary Tools for Ciena Stock analysis
When running Ciena Corp's price analysis, check to measure Ciena Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ciena Corp is operating at the current time. Most of Ciena Corp's value examination focuses on studying past and present price action to predict the probability of Ciena Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ciena Corp's price. Additionally, you may evaluate how the addition of Ciena Corp to your portfolios can decrease your overall portfolio volatility.
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Is Ciena Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ciena Corp. If investors know Ciena will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ciena Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.33) | Earnings Share 1.54 | Revenue Per Share 29.507 | Quarterly Revenue Growth (0.02) | Return On Assets 0.0424 |
The market value of Ciena Corp is measured differently than its book value, which is the value of Ciena that is recorded on the company's balance sheet. Investors also form their own opinion of Ciena Corp's value that differs from its market value or its book value, called intrinsic value, which is Ciena Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ciena Corp's market value can be influenced by many factors that don't directly affect Ciena Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ciena Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ciena Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ciena Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.