CIEN
Ciena Corporation (CIEN)
Last Price$74.7(6.1%)
Market Cap$11.2B
DCF value
$18.7
Overvalued (DCF value)
(75.0%)
Discount Rate
7.5%
Long-Term Growth Rate
4.0%
Stock quality
6/10
Good

CIEN DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Oct'20 ActualOct'21 ActualOct'22 ActualOct'23 ActualNov'24 ActualNov'25 EstimateNov'26 EstimateNov'27 EstimateNov'28 EstimateNov'29 EstimateNov'30 EstimateNov'31 EstimateNov'32 EstimateNov'33 EstimateNov'34 EstimateNov'35 Terminal
% growth
3,532.2
(1.1%)
3,620.7
2.5%
3,632.7
0.3%
4,386.5
20.8%
4,015.0
(8.5%)
4,408.5
9.8%
4,810.3
9.1%
5,214.2
8.4%
5,623.3
7.8%
6,033.5
7.3%
6,440.6
6.7%
6,839.8
6.2%
7,226.1
5.6%
7,594.5
5.1%
7,940.0
4.5%
8,257.6
4.0%
487.0
13.8%
495.4
13.7%
222.8
6.1%
357.5
8.2%
166.6
4.1%
434.0
9.8%
473.6
9.8%
513.4
9.8%
553.6
9.8%
594.0
9.8%
634.1
9.8%
673.4
9.8%
711.4
9.8%
747.7
9.8%
781.7
9.8%
813.0
9.8%
NOPAT
% effective tax rate
385.9
10.9%
535.4
14.8%
186.7
5.1%
281.5
6.4%
116.7
2.9%
304.0
6.9%
331.8
6.9%
359.6
6.9%
387.8
6.9%
416.1
6.9%
444.2
6.9%
471.7
6.9%
498.4
6.9%
523.8
6.9%
547.6
6.9%
569.5
6.9%
% of revenue
132.5
3.8%
132.3
3.7%
140.2
3.9%
142.2
3.2%
133.5
3.3%
153.2
3.5%
167.2
3.5%
181.2
3.5%
195.4
3.5%
209.7
3.5%
223.8
3.5%
237.7
3.5%
251.1
3.5%
263.9
3.5%
275.9
3.5%
287.0
3.5%
% of revenue
(82.7)
(2.3%)
(79.6)
(2.2%)
(90.8)
(2.5%)
(106.2)
(2.4%)
0.0
0.0%
(72.3)
(1.6%)
(78.9)
(1.6%)
(85.5)
(1.6%)
(92.2)
(1.6%)
(99.0)
(1.6%)
(105.6)
(1.6%)
(112.2)
(1.6%)
(118.5)
(1.6%)
(124.6)
(1.6%)
(130.2)
(1.6%)
(135.5)
(1.6%)
(199.9)
(5.7%)
(68.2)
(1.9%)
(572.1)
(15.7%)
(396.8)
(9.0%)
102.8
2.6%
(326.7)
(7.4%)
(356.5)
(7.4%)
(386.4)
(7.4%)
(416.8)
(7.4%)
(447.2)
(7.4%)
(477.3)
(7.4%)
(506.9)
(7.4%)
(535.6)
(7.4%)
(562.9)
(7.4%)
(588.5)
(7.4%)
(612.0)
(7.4%)
Free Cash Flow to Firm (FCFF)
% of revenue
235.9
6.7%
520.0
14.4%
(336.1)
(9.3%)
(79.3)
(1.8%)
352.9
8.8%
58.2
1.3%
63.5
1.3%
68.8
1.3%
74.2
1.3%
79.6
1.3%
85.0
1.3%
90.3
1.3%
95.4
1.3%
100.2
1.3%
104.8
1.3%
109.0
1.3%
% of FCFF used in calculation
66.8%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.96
0.90
0.83
0.78
0.72
0.67
0.62
0.58
0.54
0.50
Discounted FCFF (DFCFF)
37.5
56.9
57.4
57.5
57.4
57.0
56.3
55.3
54.0
52.5

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CIEN DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
541.8M
30.0%
Terminal Value (TV)
2,523.5M
Discounted TV
% share of EV
1,264.2M
70.0%
Total Debt
256.1M
2,801.1M
Shares outstanding
150.0M
FX rate
1.0
75% overvalued

Equity Value Bridge

CIEN DCF Financials

Revenue
$4,015.0M -> $7,940.0M 7.1% CAGR
Operating Income
$166.6M -> $781.7M 16.7% CAGR
FCFF
$352.9M -> $104.8M (11.4%) CAGR

CIEN DCF sensitivity

DCF value
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
7.0%
$19.0
$19.0
$19.0
$19.0
$19.0
7.5%
$18.0
$19.0
$19.0
$19.0
$19.0
7.5%
$18.0
$19.0
$19.0
$19.0
$19.0
8.5%
$16.0
$17.0
$18.0
$18.0
$18.0
9.0%
$15.0
$16.0
$16.0
$17.0
$18.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
7.0%
(75.0%)
(75.0%)
(75.0%)
(75.0%)
(75.0%)
7.5%
(76.0%)
(75.0%)
(75.0%)
(75.0%)
(75.0%)
7.5%
(76.0%)
(75.0%)
(75.0%)
(75.0%)
(75.0%)
8.5%
(79.0%)
(77.0%)
(76.0%)
(76.0%)
(76.0%)
9.0%
(80.0%)
(79.0%)
(79.0%)
(77.0%)
(76.0%)

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FAQ

What is Ciena Corporation DCF (discounted cash flow) valuation?

As of Mar 03, 2025, Ciena Corporation's Discounted Cash Flow (DCF) valuation estimates its share price at $18.7. This suggests it may be overvalued by (75.0%) compared to its current price of around $74.7, using a WACC of 7.5% and growth rates of 4.0%.

What is Ciena Corporation WACC?

As of Mar 03, 2025, Ciena Corporation's Weighted Average Cost of Capital (WACC) is approximately 7.5%.

What is Ciena Corporation Enterprise Value?

As of Mar 03, 2025, Ciena Corporation's Enterprise Value (EV) is approximately $1,806.0M. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.