Illumina Inc's market capitalization of $55,770,330,000 is ahead of 96.73% of US-listed equities.
ILMN's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 568.92 -- higher than 93.63% of US-listed equities with positive expected earnings growth.
The price/operating cash flow metric for Illumina Inc is higher than 93.31% of stocks in our set with a positive cash flow.
Stocks with similar financial metrics, market capitalization, and price volatility to Illumina Inc are NTES, VMW, ATVI, EW, and SQ.
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:
We started the process of determining a valid price forecast for Illumina Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Illumina Inc ranked in the 23th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Illumina Inc, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 23.21 -- which is good for besting 86.44% of its peer stocks (US stocks in the Healthcare sector with positive cash flow).
The business' balance sheet reveals debt to be 3% of the company's capital (with equity being the remaining amount). Approximately only 10.65% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
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 50.64% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BHC, MD, MTD, WST, and ABT 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.
Illumina is nearing a 377.90 flat-base buy point. The genomics sequencing machine giant previously broke out from a deep base, either a cup or wild, long double-bottom. Very deep, loose bases are less likely to work. Might want to wait to see if it sets up again in a more-bullish pattern.
The genomics revolution will offer extraordinary opportunities for growth in the years ahead, and Illumina (ILMN) is in a position of strength to benefit from those opportunities. The company is at the same time a major driving force and one of the main beneficiaries of the genomics boom. Illumina has...
Andres Cardenal, CFA on Seeking Alpha | June 25, 2020