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:
We started the process of determining a valid price forecast for Qorvo Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Qorvo Inc ranked in the 69th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 182.83%. In terms of the factors that were most noteworthy in this DCF analysis for QRVO, they are:
As a business, QRVO is generating more cash flow than 81.33% of positive cash flow stocks in the Technology.
The business' balance sheet reveals debt to be 10% of the company's capital (with equity being the remaining amount). Approximately just 22.75% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
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 39.66% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
GDDY, ERIC, CIEN, TAIT, and GENH can be thought of as valuation peers to QRVO, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.