Cohu Inc. is a supplier of semiconductor test and inspection handlers, micro-electro mechanical system test modules, test contactors and thermal subsystems used by global semiconductor manufacturers and test subcontractors. The company was founded in 1947 and is based in Poway, California.
COHU Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for COHU, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Cohu Inc ranked in the 15th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for COHU, they are:
Cohu Inc's weighted average cost of capital (WACC) is 11%; for context, that number is higher than 73.65% of tickers in our DCF set.
Cohu Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -2.12. This coverage rate is greater than that of only 17.24% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than 69.05% of stocks in its sector (Technology).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as COHU, try MRVL, VECO, ZIXI, ANSS, and CAMP.
Cohu, Inc. (NASDAQ: COHU), a global leader in back-end semiconductor equipment and services, today announced the introduction of its cRacer RF interface platform for next generation mmWave device test.
Moody's Investors Service, ("Moody's") affirmed Cohu, Inc.'s ("Cohu") ratings, including the Corporate Family Rating ("CFR") of B2, Probability of Default Rating ("PDR") of B2-PD, and the senior secured term loan ("Term Loan") of B2. The Speculative Grade Liquidity ("SGL") rating is unchanged at SGL-2.