Fabrinet (FN)

Telephone & Telegraph Apparatus

Latest Price

$435.41

TTM P/E

37.44

Normalized P/E

53.61

Div Yield

Book Value

64.36

P/B Ratio

6.77

Valuation metrics

EPS: $9.17

Book value / share: $55.47

Formula: √(22.5 × EPS × BVPS)

Graham Number

$106.98

75% downside

Norm. op. income: $205M (median of 7yr)

Tax rate: 5%

Discount rate: 10%

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

Earnings Power Value

$80.53

82% 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

$44.26

90% downside

EPS: $9.17

Target P/E: 54×

Formula: EPS × P/E

P/E Fair Value

$495.18

+14% upside