MaxLinear Inc. provides integrated, radio-frequency (RF) and mixed-signal circuits for broadband communication and data center, metro, and long-haul transport network applications worldwide. The company was founded in 2003 and is based in Carlsbad, California.
MXL 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 Maxlinear Inc. To summarize, we found that Maxlinear Inc ranked in the 56th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 39.33% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for MXL, they are:
Maxlinear Inc's effective tax rate, as measured by taxes paid relative to net income, is at 28 -- greater than 89.73% of US stocks with positive free cash flow.
Maxlinear Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -3.08. This coverage rate is greater than that of merely 12.25% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 9. This value is greater than 85.47% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
UPWK, NLOK, ZBRA, CPSI, and JCOM can be thought of as valuation peers to MXL, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Good afternoon, everyone, and thank you for joining us on today's conference call to discuss MaxLinear's first-quarter 2020 financial results. Today's call is being hosted by Dr. Kishore Seendripu, CEO; and Steve Litchfield, chief financial officer and chief corporate strategy officer.