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 13th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Silicon Motion Technology CORP, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 24,025.67 -- which is good for besting 99.77% of its peer stocks (US stocks in the Technology sector with positive cash flow).
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately only 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 3%; for context, that number is higher than 59.88% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Silicon Motion Technology CORP? See MXL, SQ, AIRG, FARO, and HPE.
TAIPEI, Taiwan and MILPITAS, Calif., Jan. 07, 2021 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion” or the “Company”), a global leader in NAND flash controllers for solid state storage devices, announces that based on its preliminary fourth quarter financial results, revenue is expected to be approximately 3% above the high-end of the original guidance range of $130 million to $139 million which the company issued on November 3, 2020. Gross margin (non-GAAP) is expected to be near the mid-point of the company's original guidance range of 48.0% to 50.0%.The Company will release its fourth quarter 2020 financial results after the market closes on February 3, 2021 and will host a conference call on February 4 at 8:00 a.m. Eastern Time. Participan...