Silicon Laboratories designs, develops, and markets mixed-signal analog intensive integrated circuits. The company was founded in 1996 and is based in Austin, Texas.
SLAB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SLAB, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Silicon Laboratories Inc ranked in the 17th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 77.5%. The most interesting components of our discounted cash flow analysis for Silicon Laboratories Inc ended up being:
In the past 5.73 years, Silicon Laboratories Inc has a compound free cash flow growth rate of 0.02%; that's higher than only 20.62% of free cash flow generating stocks in the Technology sector.
90% of the company's capital comes from equity, which is greater than 75.22% of stocks in our cash flow based forecasting set.
The business' balance sheet suggests that 10% of the company's capital is sourced from debt; this is greater than merely 24.74% of the free cash flow producing stocks we're observing.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AIRG, AZPN, HBB, TDC, and SMTX can be thought of as valuation peers to SLAB, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
DUBLIN--(BUSINESS WIRE)--The "IoT Chip In Government Market - Forecasts from 2020 to 2025" report has been added to ResearchAndMarkets.com's offering. The IoT chip in government market sector was estimated at US$2,852.847 million for the year 2019. Companies Mentioned Intel Corporation Qualcomm Technologies, Inc. Texas Instruments Incorporated Cypress Semiconductor Corporation NXP Semiconductors Silicon Laboratories Inc. Analog Devices, Inc. STMicroelectronics Renesas Electronics Corporation No
Silicon Laboratories (SLAB) does not lack for growth opportunities. The company has one of the strongest portfolios of lower-power wireless connectivity assets for IoT (both consumer and industrial), a “good enough” microcontroller business for IoTs, and an underrated timing and isolator business that gives the company leverage to 5G and...
Stephen Simpson, CFA on Seeking Alpha | August 31, 2020