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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Micron Technology Inc. To summarize, we found that Micron Technology Inc ranked in the 0th 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:
The company's compound free cash flow growth rate over the past 5.78 years comes in at -0.46%; that's greater than just 2.43% of US stocks we're applying DCF forecasting to.
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 34.71% of tickers in our DCF set.
The weighted average cost of capital for the company is 8. This value is greater than merely 22.57% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as MU, try AOSL, AVID, BHE, CDAY, and DBD.
After the bell on Tuesday, we received fiscal fourth quarter results from semiconductor company Micron (MU). The headline numbers showed solid beats, which sent the stock higher initially in the after hours session. Unfortunately, shares eventually turned lower as investors focused on weak guidance, especially in regards to the NAND...
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
Thriving on its steady market share growth and innovative products, Micron Technology Inc. (NASDAQ: MU) has successfully navigated the ups and downs of the industry so far and reaffirmed its dominance in the memory and storage solutions market. While remote work and digital transformation helped the chipmaker overcome the impact of coronavirus to a large […]