InterDigital designs and develops technologies that enable and enhance wireless communications in the United States and internationally. The company was founded in 1972 and is based in Wilmington, Delaware.
IDCC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for InterDigital Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that InterDigital Inc ranked in the 14th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for InterDigital Inc ended up being:
The company's compound free cash flow growth rate over the past 5.81 years comes in at -0.08%; that's greater than only 18.96% of US stocks we're applying DCF forecasting to.
As a business, IDCC is generating more cash flow than only 22.07% of positive cash flow stocks in the Communication Services.
InterDigital Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than 67.42% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
IDT, CHL, VG, ATNI, and CHA can be thought of as valuation peers to IDCC, in the sense that they are in the Communication Services sector and have a similar price forecast based on DCF valuation.