There are 3 reasons why you should discount 50% of the price from DCF valuation:
1. Management has not been truthful (not conservative). No way they did not know this is coming and shoud have disclosed when they announced thier reduction in dividend. My guess is that they wanted to spread the bad news. 2. It is going to get tougher with margins as well as revenue.If you look at other EMS provider e.g. Flextronics, Jabil, etc...their margin and growth numbers are horrible. 3. If this is under value, why there is no buybacks or insider buying? I will wait for this indicator before moving in.
I have been sitting on the sideline for awhile to let all of this play out. It is not over yet. if you want a better value play (i'm self-proclaim value investor), try JLG.