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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

Dollar13Point92
Arrow_up_green360.93% from latest share price

Your Valuation


Valuation Compared to price Member Created Views
$13.92 Arrow_up_green360.93% Valuecruncher 23 Nov 2008 0
$10.23 Arrow_up_green15.46% GordonGekko 28 Aug 2008 26
$10.30 Arrow_up_green0.29% KiwiEMH 01 Aug 2008 33
$11.64 Arrow_up_green14.01% TheCrunchBlog 31 Jul 2008 138
$11.32 Arrow_up_green8.53% GordonGekko 28 Jul 2008 31
$13.12 Arrow_up_green0.31% KiwiEMH 30 May 2008 50

Recent Comments


Sun Microsystems (JAVA) – all about the profits

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).

By TheCrunchBlog, on the valuation by TheCrunchBlog, 3 months ago


Latest Share Price: $3.02
Updated: 5 hours ago
Ticker: JAVA
Market: NASD