Fabrinet (FN)

Telephone & Telegraph Apparatus

Latest Price

$424.27

TTM P/E

36.48

Normalized P/E

51.08

Div Yield

Book Value

64.33

P/B Ratio

6.60

Valuation metrics

EPS: $13.05

Book value / share: $68.49

Formula: √(22.5 × EPS × BVPS)

Graham Number

$141.81

67% downside

Norm. op. income: $252M (median of 7yr)

Tax rate: 5%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$91.15

79% downside

Base FCF: $152M (median of recent 5yr)

Growth: -15%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$42.48

90% downside

EPS: $13.05

Target P/E: 51×

Formula: EPS × P/E

P/E Fair Value

$665.55

+57% upside