The industry’s growth in cloud networking is directly influencing investor optimism. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Credo Technology Group Holding as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.5%, which is based on a levered beta of 1.266. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard. The latest crdo stock price forecast points to a potential trading range between $15.20 and $17.80 over the next quarter, supported by strong fiber optic demand and rising data center investment. Analysts have increased their EPS estimates following the company’s robust Q1 revenue beat.