Marvell Technology Group designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. The company was founded in 1995 and is based in Hamilton, Bermuda.
MRVL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MRVL, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Marvell Technology Group Ltd ranked in the 15th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 85%. The most interesting components of our discounted cash flow analysis for Marvell Technology Group Ltd ended up being:
In the past 5.51 years, Marvell Technology Group Ltd has a compound free cash flow growth rate of 0.04%; that's better than just 22.92% of cash flow producing equities in the Technology sector, where it is classified.
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately just 14.61% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
MRVL'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 44.18% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
INOV, QCOM, AOSL, CAMP, and CNXN can be thought of as valuation peers to MRVL, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.