Ciena Corp Valuation
| CIEN Stock | USD 69.72 0.55 0.80% |
At this time, the firm appears to be overvalued. Ciena Corp shows a prevailing Real Value of $57.87 per share. The current price of the firm is $69.72. Our model approximates the value of Ciena Corp from analyzing the firm fundamentals such as return on equity of 0.0473, and Profit Margin of 0.03 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Ciena Corp's valuation include:
Price Book 3.4832 | Enterprise Value 10.6 B | Enterprise Value Ebitda 28.1763 | Price Sales 2.5046 | Forward PE 25.7069 |
Overvalued
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.
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 69.72 | Real 57.87 | Target 59.27 | Hype 69.26 | Naive 67.71 |
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.
Ciena Corp Cash |
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Ciena Valuation Trend
Knowing Ciena Corp's actual value is paramount for traders when making sound investment determinations. Using both Ciena Corp's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Ciena Revenue by Product
Ciena Corp Total Value Analysis
Ciena Corp is currently forecasted to have valuation of 10.56 B with market capitalization of 10.07 B, debt of 1.66 B, and cash on hands of 1.18 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Ciena Corp fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
10.56 B | 10.07 B | 1.66 B | 1.18 B |
Ciena Corp Investor Information
About 99.0% of the company shares are held by institutions such as insurance companies. The book value of Ciena Corp was currently reported as 20.02. The company has Price/Earnings To Growth (PEG) ratio of 0.77. Ciena Corp had not issued any dividends in recent years. The entity had 1:7 split on the 25th of September 2006. Based on the analysis of Ciena Corp's profitability, liquidity, and operating efficiency, Ciena Corp is performing exceptionally good at this time. It has a great probability to report excellent financial results in January.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.14 | 0.1379 |
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Ciena Corp Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Ciena Corp has an asset utilization ratio of 78.31 percent. This suggests that the Company is making $0.78 for each dollar of assets. An increasing asset utilization means that Ciena Corp is more efficient with each dollar of assets it utilizes for everyday operations.Ciena Corp Ownership Allocation
The majority of Ciena Corp outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Ciena Corp to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Ciena Corp. Please pay attention to any change in the institutional holdings of Ciena Corp as this could imply that something significant has changed or is about to change at the company. On September 2, 2024, Representative John James of US Congress acquired under $15k worth of Ciena Corp's common stock.Ciena Corp Profitability Analysis
The company reported the previous year's revenue of 4.39 B. Net Income was 254.83 M with profit before overhead, payroll, taxes, and interest of 1.88 B.About Ciena Corp Valuation
We use absolute and 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 their related drivers, we attempt to find the most accurate representation of Ciena Corp's intrinsic value. 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, and relevant financial multiples and ratios and then compare them to those of 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 |
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.
| Common Stock Shares Outstanding | 149.4 M | |
| Quarterly Earnings Growth Y O Y | -0.504 | |
| Forward Price Earnings | 25.7069 |
Ciena Corp Current Valuation Indicators
Ciena Corp's valuation analysis is 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 closely tied 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.You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Communications Equipment space 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 (0.50) | Earnings Share 0.94 | Revenue Per Share 27.627 | Quarterly Revenue Growth (0.12) | Return On Assets 0.0252 |
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.