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:
We started the process of determining a valid price forecast for Maxlinear Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Maxlinear Inc ranked in the 12th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for MXL, they are:
Maxlinear Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -7.95. This coverage rate is greater than that of only 9.49% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 10. This value is greater than 85.09% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SIMO, SQ, AIRG, FARO, and HPE 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.
Investors have a clear task ahead: find the stocks that will rise with an approaching bull market. Past performance, of course, is no guarantee of future gains, but the stocks that have achieved swift growth in recent months are a logical place to start looking for tomorrow’s winners. There are worries, of course, centered on the newly Democrat-controlled US Senate that will give the incoming Biden Administration a chance to implement his tax-increase plan, and the poor December jobs numbers; will they combine to derail the market’s strong upward trend? Not so fast, according to Credit Suisse’s Jonathan Golub.
MaxLinear, Inc. (NYSE:MXL) CEO Kishore Seendripu sold 8,910 shares of the company’s stock in a transaction on Friday, January 8th. The shares were sold at an average price of $37.53, for a total value of $334,392.30. Following the completion of the sale, the chief executive officer now owns 95,835 shares in the company, valued at […]