Charts: Valuing Networking Technology Stocks Based On Book Value & Tangible Book Value

by: Robert Zenilman

Rob Zenilman submits:
Price / Book Value ratios of stocks covered in the Networking Technology sector ranged from 37.5 (ERICY) down to 1.3 (NYSE:JNPR), with a median value of 3.9.
Price / Tangible Book Value ratios ranged from 47.8 (ERICY) down to 1.8 (FDRY), with a median value of 6.9.

Tangible Book Value differs from Book Value by subtracting out the value of intangible assets from the equation Book Value = Assets - Liablilities. Examples of intangible assets are goodwill, patents, capitalized start-up expenses and deferred financing costs.


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Data in table version -- click on a ticker for opinion and analysis of the company:


06/21/06 Book Price/ Tangible Price/
Ticker Company $Close Value BV BV TBV
ADCT ADC Telecommunications In $16.41 $6.92 2.37 $3.57
4.60
AKAM Akamai Technologies Inc. $33.53 $4.25 7.90 $3.38
9.93
ALA Alcatel $12.57 $5.61 2.24 $1.55
8.09
AV Avaya Inc. $11.57 $4.14 2.80 $1.49
7.77
AVNX Avanex Corp. $1.67 $0.40 4.22 $0.33
5.09
BRCM Broadcom Corp. $32.20 $6.73 4.79 $4.48
7.19
CIEN CIENA Corp. $4.30 $1.23 3.49 $0.66
6.53
COMS 3Com Corporation $4.61 $3.08 1.50 $2.15
2.14
CSCO Cisco Systems Inc. $20.07 $3.99 5.03 $2.12
9.46
ERICY LM Ericsson Telephone Co. $32.47 $0.87 37.51 $0.68
47.84
EXTR Extreme Networks Inc. $4.31 $2.06 2.09 $2.06
2.09
FDRY Foundry Networks, Inc. $10.50 $5.89 1.78 $5.89
1.78
GLW Corning Inc. $21.78 $3.90 5.58 $3.69
5.91
JDSU JDSU $2.63 $0.96 2.73 $0.35
7.55
JNPR Juniper Networks, Inc $15.83 $12.23 1.29 $3.13
5.06
LU Lucent Technologies Inc. $2.42 $0.12 19.52 -$0.06
N/A
MRVL Marvell Technology Group $51.16 $10.87 4.71 $5.11
10.01
NT Nortel Networks Corp. $2.10 $0.16 13.50 -$0.50
N/A
TLAB Tellabs Inc. $14.41 $6.33 2.28 $3.60
4.00
VSHI VitalStream Holdings Inc. $10.45 $1.31 7.97 $1.13
9.22

Data: CapitalIQ

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