Illumina is a global leader in DNA sequencing and array-based technologies, serving customers in the research, clinical and applied markets. The company's products are used for applications in the life sciences, oncology, reproductive health, agriculture and other emerging segments. The company was founded in 1998 and is based in San Diego, California.
ILMN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Illumina Inc. To summarize, we found that Illumina Inc ranked in the 25th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 48.5%. In terms of the factors that were most noteworthy in this DCF analysis for ILMN, they are:
Interest coverage, a measure of earnings relative to interest payments, is 22.73 -- which is good for besting 83.23% of its peer stocks (US stocks in the Healthcare sector with positive cash flow).
The business' balance sheet suggests that 4% of the company's capital is sourced from debt; this is greater than only 12.28% of the free cash flow producing stocks we're observing.
ILMN's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 55.04% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CAH, EHC, ENZ, VREX, and ZBH can be thought of as valuation peers to ILMN, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.