Semtech Corporation is a leading supplier of analog and mixed-signal semiconductors for high-end consumer, enterprise computing, communications and industrial equipment. The company was founded in 1960 and is based in Camarillo, California.
SMTC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Semtech Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Semtech Corp ranked in the 17th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Semtech Corp ended up being:
The compound growth rate in the free cash flow of Semtech Corp over the past 5.54 years is 0%; that's higher than only 21.35% of free cash flow generating stocks in the Technology sector.
93% of the company's capital comes from equity, which is greater than 83.98% of stocks in our cash flow based forecasting set.
The business' balance sheet suggests that 7% of the company's capital is sourced from debt; this is greater than merely 15.98% of the free cash flow producing stocks we're observing.
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 Semtech Corp? See ESE, EVER, CTXS, ENV, and MELI.