Micron Technology, Inc. provides semiconductor solutions worldwide. The company manufactures and markets dynamic random access memory (DRAM), NAND flash, and NOR flash memory products; and packaging solutions and semiconductor systems. The company was founded in 1978 and is based in Boise, Idaho.
MU Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Micron Technology Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Micron Technology Inc ranked in the 3th 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 Micron Technology Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.48 years, is -0.34% -- higher than only 3.95% of stocks in our DCF forecasting set.
MU'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 34.45% of tickers in our DCF set.
The weighted average cost of capital for the company is 8. This value is greater than only 22.14% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CCRC, SQ, TCX, UPLD, and WDC can be thought of as valuation peers to MU, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Micron Technology, Inc. (MU) Q4 2020 Results Earnings Conference Call September 29, 2020, 4:30 PM ET Company Participants Farhan Ahmad - Vice President, Investor Relations Sanjay Mehrotra - President and CEO Dave Zinsner - Chief Financial Officer Conference Call Participants Toshiya Hari - Goldman Sachs John Pitzer - Credit Suisse...
SA Transcripts on Seeking Alpha | September 30, 2020
Listen on the go! A daily podcast of Wall Street Breakfast will be available by 8:00 a.m. on Seeking Alpha, iTunes, Stitcher and Spotify. Differing visions over path to prosperitySeptember has already seen some volatile moves for markets and tonight's highly anticipated debate between President Trump and Joe Biden may...
Wall Street Breakfast on Seeking Alpha | September 29, 2020
After the week started with a bang, what kind of follow-up might be in store? Maybe one where the market just drifts around looking for direction, in part because of trepidation ahead of tonight’s presidential debate. The cautious mood seems to be reflected in pre-market trading, where major indices were barely changed ahead of the open. Besides the debate, focus could turn toward Fed policy, with no fewer than five Fed officials scheduled to deliver remarks spread out across the day. Investors also await any stimulus-related developments in Washington, D.C. Another thing awaited is a look into the semiconductor industry, with Micron Technology, Inc. (NASDAQ: MU ) expected to report after the close. Memory chip prices are likely to be under scrutiny when the company unveils results, acc...
Pre-open movers U.S. stock futures traded mostly flat in early pre-market trade, after posting strong gains in the previous session as House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin indicated they are moving forward with talks on a stimulus deal. Investors are awaiting earnings from McCormick & Company, Incorporated (NYSE: MKC ) and Micron Technology, Inc. (NASDAQ: MU ). Data on U.S. international trade in goods for August and wholesale inventories for August will be released at 8:30 a.m. ET. The S&P Corelogic Case-Shiller home price index for July will be released at 9:00 a.m. ET, while the Conference Board’s consumer confidence index for September is scheduled for release at 10:00 a.m. ET. Federal Reserve Bank of New York President John Williams is set to speak at 9:...