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 31th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 49%. In terms of the factors that were most noteworthy in this DCF analysis for STM, they are:
The company has produced more trailing twelve month cash flow than 76.64% of its sector Technology.
The business' balance sheet reveals debt to be 6% of the company's capital (with equity being the remaining amount). Approximately merely 17.04% 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 0.55% 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
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as STM, try COHR, ORCL, SPRS, APH, and MIME.
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.