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How does this work?
A valuation is an assessment of the value of one share in a company, it is not necessarily the same as the price listed in the sharemarket. You can use a variety of methods to value a company, Valuecruncher uses Discounted Cash Flow (DCF) analysis to help people create the valuations you see below.
Valuecruncher Valuation
360.93%
from latest share price
Your Valuation
| Valuation | Compared to price | Member |
 Created
|
Views |
|---|---|---|---|---|
| $13.92 |
360.93%
|
Valuecruncher | 23 Nov 2008 | 0 |
| $10.23 |
15.46%
|
GordonGekko | 28 Aug 2008 | 26 |
| $10.30 |
0.29%
|
KiwiEMH | 01 Aug 2008 | 33 |
| $11.64 |
14.01%
|
TheCrunchBlog | 31 Jul 2008 | 138 |
| $11.32 |
8.53%
|
GordonGekko | 28 Jul 2008 | 31 |
| $13.12 |
0.31%
|
KiwiEMH | 30 May 2008 | 50 |
Recent Comments
| Updated: | 5 hours ago |
| Ticker: | JAVA |
| Market: | NASD |
This valuation is part of this blog post:
http://blog.valuecruncher.com/2008/07/sun-microsystems-java-all-about-the-profits/
JAVA grew revenues from US$11.19 billion in 2004 to US$13.87 billion in 2007 – a 7.4% compound annual growth rate. Our assumptions of revenues for the next three years are US$14.0 billion in 2009 growing to US$15.0 billion in 2011 – a 2.6% compound annual growth rate (2008-11). We have projected EBITDA margins to be flat at 10.0% to 2011. We have used a terminal growth rate of 2.5%. We used a terminal capital expenditure number of US$600 million. We have used a WACC (discount rate) of 12%.
Based on our analysis the current share price looks undervalued. In our view the key assumption is the EBITDA margin moving forward. If JAVA can increase their EBITDA margin to 12% in 2011 that lifts our valuation to US$13.91 (36% above the current share price). However if JAVA’s EBITDA margin dropped to 8% in 2011 that lowers our valuation to US$9.38 (8% below the current share price).