Diodes Incorporated designs, manufactures, and supplies application-specific standard products in the discrete, logic, and analog semiconductor markets primarily in Asia, North America, and Europe. The company was founded in 1959 and is based in Plano, Texas.
DIOD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for DIOD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Diodes Inc ranked in the 37th 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 DIOD, they are:
The business' balance sheet suggests that 9% of the company's capital is sourced from debt; this is greater than just 24.88% of the free cash flow producing stocks we're observing.
DIOD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 35.92% of tickers in our DCF set.
The weighted average cost of capital for the company is 9. This value is greater than merely 22.9% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AVID, ORCL, INIS, ADI, and PALT can be thought of as valuation peers to DIOD, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Gilead Sciences, Inc. (Nasdaq: GILD) announced today that its fourth quarter and full year 2020 financial results will be released on Thursday, February 4, after the market closes. At 4:30 p.m. Eastern Time, Gilead’s management will host a conference call to discuss the company’s fourth quarter and full year 2020 financial results and will provide a business update.