STMicroelectronics NV designs, develops, manufactures, and markets various semiconductor integrated circuits and discrete devices worldwide. The company was founded in 1987 and is based in Geneva, Switzerland.
STM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for STMicroelectronics NV with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that STMicroelectronics NV ranked in the 33th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 40.17%. As for the metrics that stood out in our discounted cash flow analysis of STMicroelectronics NV, consider:
As a business, STM is generating more cash flow than 76.56% of positive cash flow stocks in the Technology.
The business' balance sheet reveals debt to be 7% of the company's capital (with equity being the remaining amount). Approximately just 17.82% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
STMicroelectronics NV's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1,187. This coverage rate is greater than that of merely 0.48% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ACIW, DBX, TDY, VSH, and YY can be thought of as valuation peers to STM, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
STMicroelectronics (STM) reports that preliminary Q3 revenues for quarter ended September 26, are above the business outlook provided on July 23. Q3 net revenues are $2.67B, up 27.8% sequentially (consensus: $2.47B). The prior outlook was $2.45B.FY2020 revenues are expected to be above $9.65B (consensus $9.45B) vs. prior range of $9.25B - $9.65B....
[BENGALURU] European stocks rose on Thursday as Swedish retailer H&M and French-Italian chipmaker STMicroelectronics jumped after reporting forecast-beating results, while hopes of more US stimulus aided global sentiment. Read more at The Business Times.