Silicon Motion Technology Corporation, each representing four ordinary shares (SIMO) Company Bio
Silicon Motion Technology Corporation designs, develops and markets high performance, low-power semiconductor solutions to OEMs and other customers in the mobile storage and mobile communications markets. The company was founded in 1995 and is based in Zhubei City, Taiwan.
SIMO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Silicon Motion Technology CORP with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Silicon Motion Technology CORP ranked in the 11th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 89.67%. The most interesting components of our discounted cash flow analysis for Silicon Motion Technology CORP ended up being:
The compound growth rate in the free cash flow of Silicon Motion Technology CORP over the past 5.12 years is 0.03%; that's higher than only 21.27% of free cash flow generating stocks in the Technology sector.
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately merely 0.05% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
SIMO'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 59.85% of tickers in our DCF set.
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 SIMO, try EVOP, GLW, INIS, INOV, and FEYE.
Looking over its shoulder, Silicon Motion (SIMO) would, no doubt, see an obstacle ridden path - and not just due to the 2020 pandemic. From the fourth quarter of 2014 through the third quarter of 2016, the world's leading NAND flash controller supplier delivered quarter-over-quarter growth. In the second quarter...
Silicon Motion Technology Corporation (SIMO) cruised by Q2 earnings estimates. But despite growing revenue and EPS by double digits, the stock has added to its losses for the year and is now down by over 25% YTD. The stock fell after the company reported in its outlook that revenue is...
MarketGyrations on Seeking Alpha | August 25, 2020
Ladies and gentlemen, thank you for standing by and welcome to Silicon Motion's Technology Corp. Q2 2020 Earnings Conference Call. Following my comments, Wallace will provide a review of our key business developments and then Riyadh will discuss our second quarter results and our outlook.