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:
Below please find a table outlining a discounted cash flow forecast for IDCC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that InterDigital Inc ranked in the 25th 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. 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 5.72 years comes in at -0.07%; that's greater than merely 16.58% of US stocks we're applying DCF forecasting to.
84% of the company's capital comes from equity, which is greater than 63.69% of stocks in our cash flow based forecasting set.
Relative to other stocks in its sector (Communication Services), InterDigital Inc has a reliance on debt greater than only 22.53% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Communication Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as IDCC, try OTEL, CHA, USM, ATNI, and VG.
InterDigital (IDCC) has issued revenue guidance for Q3. The company expects $83M-$88M in revenues, generally in line with consensus for $85.5M. That guidance doesn't account for potential impact of new patent license, technology solutions or patent sale agreements that might be signed the rest of the way, or any arbitration...