Weste
Western Digital’s (NASDAQ: WDC) inventory at present stands at round $69 per share, whereas we count on a good value of round $75.80 per share of WDC’s inventory. Our value estimate is predicated on anticipated 2020 income per share of $58.82 and a price-to-sales a number of of round 1.3x.
We’ve summarized our forecasts in our interactive dashboard on Western Digital’s Valuation the place we element among the key steps in figuring out WDC’s valuation sensitivity to modifications in its section revenues, shares excellent, and valuation a number of.
We arrive on the inventory value estimate for WDC as:
Inventory Value = (Whole Income / Shares Excellent) x P/S A number of
A] Estimating Whole Income
- Total revenue has dropped from $19.09 billion in 2017 to $16.57 billion in 2019, on the again of a provide glut within the reminiscence market.
- Additionally, a drop in…