Qorvo Inc. is a leading provider of core technologies and RF solutions for mobile, infrastructure and aerospace/defense applications. The company was founded in 2015 and is based in Greensboro, North Carolina.
QRVO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for QRVO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Qorvo Inc ranked in the 61th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for QRVO, they are:
The business' balance sheet suggests that 11% of the company's capital is sourced from debt; this is greater than merely 24.75% of the free cash flow producing stocks we're observing.
QRVO'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 35.42% of tickers in our DCF set.
The weighted average cost of capital for the company is 8. This value is greater than only 24.59% 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 QRVO, try ERIC, TRT, GENH, GVP, and AMZN.
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Qorvo (QRVO +2.2%) has completed an offering of $700M in senior debt. The company closed the offering of that amount of senior notes maturing in 2031, paying interest at a rate of 3.375%. It plans to use net proceeds along with borrowings under its credit facility to redeem all of...