Understanding Micron Technology Inc (NAS:MU) - How much is it worth?
This post is a complementary post of Understanding Micron Technology Inc (NAS:MU), make sure to go and see it.
As we saw in the original post, the best ways to look at micron are on the PS ratio, and to value it to use FCF projected.
Here we are going to make a calculation of the Free cash flow (FCF) valuation.
But be carefull! as you see in the chart below the FCF valuation normally lags fundamental data like sales drops, like is happening right now. So we are going to be a little bit more careful in our calculations bellow.
First question to answer: What are the timeframes for sales cycles with micron?
Why? because this is a cyclical stock, and we want to make sure to take that on account.
To have a approximately good answer we look into this revenue chart (I added net income just for fun, and market capitalization so we don't have share buybacks or emissions as a distortion)
Please read the article "Blog's "read me first"" Terms And Conditions Of Use All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner of this blog will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information. This terms and conditions is subject to change at anytime with or without notice.
As we saw in the original post, the best ways to look at micron are on the PS ratio, and to value it to use FCF projected.
Here we are going to make a calculation of the Free cash flow (FCF) valuation.
But be carefull! as you see in the chart below the FCF valuation normally lags fundamental data like sales drops, like is happening right now. So we are going to be a little bit more careful in our calculations bellow.
First question to answer: What are the timeframes for sales cycles with micron?
Why? because this is a cyclical stock, and we want to make sure to take that on account.
To have a approximately good answer we look into this revenue chart (I added net income just for fun, and market capitalization so we don't have share buybacks or emissions as a distortion)
Please read the article "Blog's "read me first"" Terms And Conditions Of Use All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner of this blog will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information. This terms and conditions is subject to change at anytime with or without notice.
