Intrinsic value of Cirrus Logic - CRUS

Previous Close

$54.93

  Intrinsic Value

$652.57

stock screener

  Rating & Target

str. buy

+999%

  Value-price divergence*

+40%

Previous close

$54.93

 
Intrinsic value

$652.57

 
Up/down potential

+999%

 
Rating

str. buy

 
Value-price divergence*

+40%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of CRUS stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 3.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  31.65
  41.40
  37.76
  34.48
  31.54
  28.88
  26.49
  24.34
  22.41
  20.67
  19.10
  17.69
  16.42
  15.28
  14.25
  13.33
  12.49
  11.74
  11.07
  10.46
  9.92
  9.43
  8.98
  8.58
  8.23
  7.90
  7.61
  7.35
  7.12
  6.90
  6.71
Revenue, $m
  1,539
  2,176
  2,998
  4,032
  5,303
  6,835
  8,645
  10,750
  13,159
  15,879
  18,912
  22,258
  25,914
  29,873
  34,131
  38,680
  43,513
  48,623
  54,006
  59,657
  65,573
  71,754
  78,199
  84,912
  91,897
  99,160
  106,710
  114,555
  122,707
  131,180
  139,988
Variable operating expenses, $m
 
  1,359
  1,861
  2,493
  3,271
  4,207
  5,314
  6,601
  8,074
  9,736
  11,591
  13,608
  15,842
  18,263
  20,866
  23,647
  26,602
  29,726
  33,017
  36,471
  40,088
  43,867
  47,807
  51,911
  56,182
  60,622
  65,237
  70,033
  75,017
  80,197
  85,582
Fixed operating expenses, $m
 
  265
  272
  279
  286
  293
  300
  308
  316
  323
  332
  340
  348
  357
  366
  375
  384
  394
  404
  414
  424
  435
  446
  457
  468
  480
  492
  504
  517
  530
  543
Total operating expenses, $m
  1,222
  1,624
  2,133
  2,772
  3,557
  4,500
  5,614
  6,909
  8,390
  10,059
  11,923
  13,948
  16,190
  18,620
  21,232
  24,022
  26,986
  30,120
  33,421
  36,885
  40,512
  44,302
  48,253
  52,368
  56,650
  61,102
  65,729
  70,537
  75,534
  80,727
  86,125
Operating income, $m
  317
  552
  864
  1,259
  1,746
  2,335
  3,031
  3,841
  4,770
  5,819
  6,990
  8,311
  9,723
  11,253
  12,899
  14,658
  16,527
  18,503
  20,585
  22,772
  25,061
  27,452
  29,946
  32,544
  35,247
  38,058
  40,980
  44,017
  47,173
  50,453
  53,863
EBITDA, $m
  375
  613
  938
  1,348
  1,854
  2,465
  3,188
  4,030
  4,995
  6,085
  7,301
  8,642
  10,109
  11,698
  13,408
  15,234
  17,175
  19,228
  21,390
  23,660
  26,038
  28,521
  31,111
  33,809
  36,617
  39,536
  42,570
  45,724
  49,001
  52,407
  55,949
Interest expense (income), $m
  3
  2
  6
  11
  17
  24
  33
  44
  57
  71
  87
  105
  125
  147
  170
  195
  222
  251
  281
  313
  347
  382
  418
  457
  496
  538
  581
  626
  672
  720
  771
Earnings before tax, $m
  315
  549
  858
  1,249
  1,730
  2,310
  2,997
  3,797
  4,713
  5,748
  6,903
  8,206
  9,598
  11,107
  12,729
  14,462
  16,304
  18,252
  20,304
  22,458
  24,714
  27,070
  29,528
  32,087
  34,751
  37,521
  40,400
  43,391
  46,501
  49,733
  53,092
Tax expense, $m
  54
  148
  232
  337
  467
  624
  809
  1,025
  1,273
  1,552
  1,864
  2,216
  2,591
  2,999
  3,437
  3,905
  4,402
  4,928
  5,482
  6,064
  6,673
  7,309
  7,973
  8,664
  9,383
  10,131
  10,908
  11,716
  12,555
  13,428
  14,335
Net income, $m
  261
  401
  627
  911
  1,263
  1,686
  2,188
  2,772
  3,441
  4,196
  5,039
  5,990
  7,007
  8,108
  9,292
  10,558
  11,902
  13,324
  14,822
  16,395
  18,041
  19,761
  21,555
  23,424
  25,368
  27,390
  29,492
  31,676
  33,946
  36,305
  38,757

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  451
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  1,413
  1,360
  1,874
  2,520
  3,314
  4,272
  5,403
  6,719
  8,225
  9,924
  11,820
  13,911
  16,196
  18,671
  21,332
  24,175
  27,195
  30,390
  33,754
  37,286
  40,983
  44,846
  48,875
  53,070
  57,436
  61,975
  66,693
  71,597
  76,692
  81,988
  87,493
Adjusted assets (=assets-cash), $m
  962
  1,360
  1,874
  2,520
  3,314
  4,272
  5,403
  6,719
  8,225
  9,924
  11,820
  13,911
  16,196
  18,671
  21,332
  24,175
  27,195
  30,390
  33,754
  37,286
  40,983
  44,846
  48,875
  53,070
  57,436
  61,975
  66,693
  71,597
  76,692
  81,988
  87,493
Revenue / Adjusted assets
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
  1.600
Average production assets, $m
  230
  324
  447
  601
  790
  1,018
  1,288
  1,602
  1,961
  2,366
  2,818
  3,316
  3,861
  4,451
  5,086
  5,763
  6,483
  7,245
  8,047
  8,889
  9,770
  10,691
  11,652
  12,652
  13,693
  14,775
  15,900
  17,069
  18,283
  19,546
  20,858
Working capital, $m
  632
  257
  354
  476
  626
  806
  1,020
  1,269
  1,553
  1,874
  2,232
  2,626
  3,058
  3,525
  4,027
  4,564
  5,134
  5,738
  6,373
  7,040
  7,738
  8,467
  9,228
  10,020
  10,844
  11,701
  12,592
  13,517
  14,479
  15,479
  16,519
Total debt, $m
  60
  168
  307
  482
  697
  957
  1,263
  1,620
  2,028
  2,489
  3,002
  3,569
  4,188
  4,859
  5,580
  6,350
  7,169
  8,035
  8,946
  9,903
  10,905
  11,952
  13,044
  14,181
  15,364
  16,594
  17,873
  19,202
  20,583
  22,018
  23,509
Total liabilities, $m
  262
  369
  508
  683
  898
  1,158
  1,464
  1,821
  2,229
  2,690
  3,203
  3,770
  4,389
  5,060
  5,781
  6,551
  7,370
  8,236
  9,147
  10,104
  11,106
  12,153
  13,245
  14,382
  15,565
  16,795
  18,074
  19,403
  20,784
  22,219
  23,710
Total equity, $m
  1,152
  992
  1,366
  1,837
  2,416
  3,114
  3,939
  4,898
  5,996
  7,235
  8,617
  10,141
  11,807
  13,611
  15,551
  17,623
  19,825
  22,154
  24,607
  27,181
  29,877
  32,693
  35,630
  38,688
  41,871
  45,180
  48,620
  52,194
  55,908
  59,769
  63,782
Total liabilities and equity, $m
  1,414
  1,361
  1,874
  2,520
  3,314
  4,272
  5,403
  6,719
  8,225
  9,925
  11,820
  13,911
  16,196
  18,671
  21,332
  24,174
  27,195
  30,390
  33,754
  37,285
  40,983
  44,846
  48,875
  53,070
  57,436
  61,975
  66,694
  71,597
  76,692
  81,988
  87,492
Debt-to-equity ratio
  0.052
  0.170
  0.220
  0.260
  0.290
  0.310
  0.320
  0.330
  0.340
  0.340
  0.350
  0.350
  0.350
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.360
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
  0.370
Adjusted equity ratio
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729
  0.729

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  261
  401
  627
  911
  1,263
  1,686
  2,188
  2,772
  3,441
  4,196
  5,039
  5,990
  7,007
  8,108
  9,292
  10,558
  11,902
  13,324
  14,822
  16,395
  18,041
  19,761
  21,555
  23,424
  25,368
  27,390
  29,492
  31,676
  33,946
  36,305
  38,757
Depreciation, amort., depletion, $m
  58
  61
  73
  89
  108
  131
  158
  189
  225
  265
  310
  332
  386
  445
  509
  576
  648
  724
  805
  889
  977
  1,069
  1,165
  1,265
  1,369
  1,477
  1,590
  1,707
  1,828
  1,955
  2,086
Funds from operations, $m
  53
  462
  700
  1,000
  1,370
  1,817
  2,346
  2,961
  3,666
  4,462
  5,350
  6,322
  7,393
  8,553
  9,801
  11,134
  12,551
  14,049
  15,627
  17,284
  19,018
  20,830
  22,720
  24,689
  26,737
  28,868
  31,082
  33,383
  35,774
  38,259
  40,843
Change in working capital, $m
  -102
  75
  97
  122
  150
  181
  214
  248
  284
  321
  358
  395
  431
  467
  502
  537
  570
  603
  635
  667
  698
  729
  761
  792
  824
  857
  891
  926
  962
  1,000
  1,039
Cash from operations, $m
  155
  387
  603
  878
  1,220
  1,636
  2,132
  2,713
  3,381
  4,141
  4,992
  5,927
  6,961
  8,086
  9,298
  10,597
  11,980
  13,446
  14,992
  16,617
  18,320
  20,101
  21,960
  23,897
  25,913
  28,010
  30,191
  32,457
  34,812
  37,260
  39,804
Maintenance CAPEX, $m
  0
  -23
  -32
  -45
  -60
  -79
  -102
  -129
  -160
  -196
  -237
  -282
  -332
  -386
  -445
  -509
  -576
  -648
  -724
  -805
  -889
  -977
  -1,069
  -1,165
  -1,265
  -1,369
  -1,477
  -1,590
  -1,707
  -1,828
  -1,955
New CAPEX, $m
  -46
  -94
  -122
  -154
  -189
  -228
  -270
  -314
  -359
  -405
  -452
  -499
  -545
  -590
  -634
  -678
  -720
  -761
  -802
  -842
  -882
  -921
  -960
  -1,000
  -1,041
  -1,082
  -1,125
  -1,169
  -1,215
  -1,262
  -1,312
Cash from investing activities, $m
  14
  -117
  -154
  -199
  -249
  -307
  -372
  -443
  -519
  -601
  -689
  -781
  -877
  -976
  -1,079
  -1,187
  -1,296
  -1,409
  -1,526
  -1,647
  -1,771
  -1,898
  -2,029
  -2,165
  -2,306
  -2,451
  -2,602
  -2,759
  -2,922
  -3,090
  -3,267
Free cash flow, $m
  169
  270
  448
  680
  971
  1,329
  1,760
  2,270
  2,862
  3,539
  4,303
  5,147
  6,085
  7,110
  8,219
  9,411
  10,684
  12,036
  13,465
  14,970
  16,550
  18,203
  19,930
  21,731
  23,607
  25,559
  27,589
  29,698
  31,890
  34,169
  36,537
Issuance/(repayment) of debt, $m
  -20
  108
  139
  175
  215
  259
  307
  356
  408
  461
  514
  567
  619
  671
  721
  770
  819
  866
  912
  957
  1,002
  1,047
  1,092
  1,137
  1,183
  1,230
  1,279
  1,329
  1,381
  1,435
  1,492
Issuance/(repurchase) of shares, $m
  -61
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -77
  108
  139
  175
  215
  259
  307
  356
  408
  461
  514
  567
  619
  671
  721
  770
  819
  866
  912
  957
  1,002
  1,047
  1,092
  1,137
  1,183
  1,230
  1,279
  1,329
  1,381
  1,435
  1,492
Total cash flow (excl. dividends), $m
  92
  377
  587
  855
  1,186
  1,588
  2,067
  2,627
  3,270
  4,000
  4,817
  5,713
  6,704
  7,780
  8,940
  10,181
  11,502
  12,901
  14,377
  15,927
  17,552
  19,250
  21,022
  22,869
  24,790
  26,789
  28,867
  31,027
  33,271
  35,604
  38,029
Retained Cash Flow (-), $m
  -293
  -291
  -374
  -471
  -579
  -698
  -825
  -959
  -1,098
  -1,239
  -1,382
  -1,524
  -1,665
  -1,804
  -1,940
  -2,073
  -2,202
  -2,328
  -2,453
  -2,575
  -2,696
  -2,816
  -2,937
  -3,059
  -3,183
  -3,309
  -3,440
  -3,574
  -3,714
  -3,860
  -4,013
Prev. year cash balance distribution, $m
 
  451
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  538
  213
  384
  607
  891
  1,242
  1,668
  2,173
  2,761
  3,435
  4,189
  5,039
  5,976
  7,000
  8,109
  9,300
  10,573
  11,924
  13,352
  14,856
  16,434
  18,085
  19,810
  21,608
  23,480
  25,428
  27,452
  29,557
  31,743
  34,016
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  516
  195
  334
  500
  690
  901
  1,127
  1,358
  1,586
  1,801
  1,989
  2,150
  2,272
  2,350
  2,381
  2,363
  2,300
  2,196
  2,056
  1,888
  1,700
  1,501
  1,298
  1,101
  913
  742
  589
  457
  347
  256
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Cirrus Logic, Inc., a fabless semiconductor company, develops, manufactures, and markets analog and mixed-signal integrated circuits (ICs) for a range of consumer and industrial markets. It offers portable audio products, including analog and mixed-signal audio converters, and digital signal processing products for mobile applications; codecs-chips that integrate analog-to-digital converters and digital-to-analog converters into a single IC; smart codecs, a codec with digital signal processer; amplifiers; and micro-electromechanical systems microphones, as well as standalone digital signal processors. The company offers its products for mobile devices, including smartphones, tablets, digital headsets, wearables, smart accessories, and portable media players. Its products are also used in laptops, audio/video receivers, home theater systems, set-up boxes, portable speakers, digital camcorders, musical instruments, and professional audio products applications; and serve the automotive market, which include satellite radio systems, telematics, and multi-speaker car-audio systems. In addition, the company’s products are used in industrial and energy-related applications, including digital utility meters, power supplies, energy control, energy measurement, and energy exploration applications. It markets and sells its products through direct sales force, external sales representatives, and distributors in the United States and internationally. Cirrus Logic, Inc. was founded in 1984 and is headquartered in Austin, Texas.

FINANCIAL RATIOS  of  Cirrus Logic (CRUS)

Valuation Ratios
P/E Ratio 13.5
Price to Sales 2.3
Price to Book 3.1
Price to Tangible Book
Price to Cash Flow 22.8
Price to Free Cash Flow 32.4
Growth Rates
Sales Growth Rate 31.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 24.3%
Cap. Spend. - 3 Yr. Gr. Rate -3.9%
Financial Strength
Quick Ratio NaN
Current Ratio 0.3
LT Debt to Equity 5.2%
Total Debt to Equity 5.2%
Interest Coverage 106
Management Effectiveness
Return On Assets 20.3%
Ret/ On Assets - 3 Yr. Avg. 12.3%
Return On Total Capital 23.4%
Ret/ On T. Cap. - 3 Yr. Avg. 14.4%
Return On Equity 26%
Return On Equity - 3 Yr. Avg. 16.4%
Asset Turnover 1.2
Profitability Ratios
Gross Margin 49.3%
Gross Margin - 3 Yr. Avg. 47.7%
EBITDA Margin 24.4%
EBITDA Margin - 3 Yr. Avg. 18.1%
Operating Margin 20.6%
Oper. Margin - 3 Yr. Avg. 16%
Pre-Tax Margin 20.5%
Pre-Tax Margin - 3 Yr. Avg. 15.2%
Net Profit Margin 17%
Net Profit Margin - 3 Yr. Avg. 11.2%
Effective Tax Rate 17.1%
Eff/ Tax Rate - 3 Yr. Avg. 29%
Payout Ratio 0%

CRUS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CRUS stock intrinsic value calculation we used $1539 million for the last fiscal year's total revenue generated by Cirrus Logic. The default revenue input number comes from 2017 income statement of Cirrus Logic. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our CRUS stock valuation model: a) initial revenue growth rate of 41.4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for CRUS is calculated based on our internal credit rating of Cirrus Logic, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Cirrus Logic.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of CRUS stock the variable cost ratio is equal to 63%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $259 million in the base year in the intrinsic value calculation for CRUS stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Cirrus Logic.

Corporate tax rate of 27% is the nominal tax rate for Cirrus Logic. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the CRUS stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for CRUS are equal to 14.9%.

Life of production assets of 10 years is the average useful life of capital assets used in Cirrus Logic operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for CRUS is equal to 11.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1152 million for Cirrus Logic - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 61.924 million for Cirrus Logic is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Cirrus Logic at the current share price and the inputted number of shares is $3.4 billion.

RELATED COMPANIES Price Int.Val. Rating
TXN Texas Instrume 80.75 77.91  hold
MXIM Maxim Integrat 44.39 15.99  str.sell
ADI Analog Devices 79.17 157.13  str.buy
NXPI NXP Semiconduc 112.35 81.79  sell
STM STMicroelectro 16.96 4.10  str.sell
QCOM Qualcomm 52.35 49.78  hold
KN Knowles 14.28 10.03  sell
DSPG DSP Group 12.00 2.81  str.sell

COMPANY NEWS

▶ 2 Big Updates Apple Inc. Could Bring to the iPhone 9   [Aug-22-17 09:30AM  Motley Fool]
▶ Better Buy: Corning Incorporated vs. Cirrus Logic   [Aug-19-17 06:06PM  Motley Fool]
▶ Why Cirrus Logic Could Bounce Back   [Aug-15-17 11:25AM  Motley Fool]
▶ An Easy-To-Use Cheat Sheet For Apple Suppliers   [Aug-10-17 08:42AM  Benzinga]
▶ 3 Key Takeaways from Cirrus Logic's Earnings Report   [Aug-08-17 07:47PM  Motley Fool]
▶ Top performing Apple suppliers   [Aug-04-17 08:50AM  CNBC Videos]
▶ Cirrus Logic beats Street 1Q forecasts   [Aug-02-17 10:29PM  Associated Press]
▶ 3 Growth Stocks for In-the-Know Investors   [05:15PM  Motley Fool]
▶ Chipmaker Cirrus Logic Tops Earnings Target On In-Line Sales   [04:09PM  Investor's Business Daily]
▶ Drastically Different Results From These Two Apple Suppliers   [06:47AM  Investor's Business Daily]
▶ Apple Suppliers Cirrus, Qorvo Report After The Close   [05:31AM  Investor's Business Daily]
▶ 2 Apple Inc. Supplier Stocks to Watch   [Jul-25-17 07:30AM  Motley Fool]
▶ 3 Things You Should Know About Cirrus Logic, Inc.   [Jul-24-17 10:50AM  Motley Fool]
▶ What I'll Be Watching When Cirrus Logic Reports Earnings   [Jul-22-17 04:11PM  Motley Fool]
▶ 3 Growth Stocks for Aspiring Investors   [Jul-18-17 03:38PM  Motley Fool]
▶ Cirrus Logic to Present at Upcoming Conferences   [Jul-17-17 04:00PM  Business Wire]
▶ Has Cirrus Logic's Growth Just Begun?   [Jul-14-17 08:33PM  Motley Fool]
▶ 3 Tech Stocks for July   [Jul-12-17 08:30AM  Motley Fool]
▶ ETFs with exposure to Cirrus Logic, Inc. : July 11, 2017   [Jul-11-17 02:20PM  Capital Cube]
▶ Better Buy: Cirrus Logic vs. Qorvo   [06:19AM  Motley Fool]
▶ Cirrus Logic to Announce Q1 Results August 2   [Jul-06-17 04:00PM  Business Wire]
▶ 2 Suppliers Dependent on Apple for Majority of Revenue   [Jun-29-17 09:45PM  Investopedia]
▶ These 3 Stocks Are Ridiculously Cheap   [09:41AM  Motley Fool]
▶ Apple Suppliers Waving Red Flags at Quarter's End   [Jun-27-17 10:30AM  Investopedia]
▶ ETFs with exposure to Cirrus Logic, Inc. : June 20, 2017   [Jun-20-17 02:50PM  Capital Cube]
▶ 3 Stocks That Could Make You Rich   [Jun-19-17 12:32PM  Motley Fool]
▶ 3 Stocks That Look a Lot Like Intel 30 Years Ago   [Jun-17-17 07:40AM  Motley Fool]
▶ 3 Stocks With NVIDIA-Like Return Potential   [Jun-13-17 04:31PM  Motley Fool]
▶ Stock With 1,631% Earnings Growth, 5% Dividend Tests Buy Zone   [Jun-09-17 02:16PM  Investor's Business Daily]
▶ Chip Stocks To Watch And Semiconductor Industry News   [Jun-06-17 11:00AM  Investor's Business Daily]
▶ These 4 Chip Stocks Earned Price-Target Hikes   [Jun-01-17 04:30PM  Investor's Business Daily]
▶ ETFs with exposure to Cirrus Logic, Inc. : May 30, 2017   [May-30-17 12:22PM  Capital Cube]
▶ Apple iPhone 8 Chip Winners And Losers Predicted   [May-26-17 08:04PM  Investor's Business Daily]
▶ 3 Key Takeaways From Cirrus Logic's Q4 Earnings   [May-15-17 09:23PM  Motley Fool]
▶ Best iPhone 8 Chip Plays: Broadcom, Cirrus Logic, Skyworks   [May-12-17 04:31PM  Investor's Business Daily]
▶ [$$] Three Apple Suppliers You Should Own   [03:13PM  Barrons.com]
▶ Which Companies Are Now Outperforming 95% Of All Stocks?   [May-05-17 12:07PM  Investor's Business Daily]
▶ Cirrus Logic Earns Membership In 95-Plus Composite Rating Club   [11:37AM  Investor's Business Daily]
▶ These 2 Top Stocks Are Near Buy Zones; Jobs Data Due: Investing Action Plan   [May-04-17 04:58PM  Investor's Business Daily]
▶ Chipmaker Qorvo Divides Wall Street With Quarterly Report   [04:43PM  Investor's Business Daily]
▶ Cirrus Logic tops Street 4Q forecasts   [May-03-17 05:01PM  Associated Press]
▶ Apple's iPhone Sales Miss Hit These Chip Companies Hardest   [03:20PM  Investor's Business Daily]
▶ What to Expect From Cirrus Logic's Q4 Results   [May-01-17 12:23PM  Motley Fool]
▶ Why Apple Is Developing Its Own Chips   [Apr-19-17 01:11PM  Bloomberg Video]
▶ Better Buy: Skyworks Solutions vs. Cirrus Logic   [Apr-13-17 09:08PM  Motley Fool]
▶ Apple In-Sourcing Hit List To Spare Cirrus, Skyworks: Analyst   [Apr-12-17 04:51PM  Investor's Business Daily]
▶ Apple iPhone Chip Report Hits Dialog, Rattles Supply Chain   [Apr-11-17 04:34PM  Investor's Business Daily]
▶ Should you buy chip stocks on the dip?   [02:33PM  CNBC Videos]
▶ Cirrus Logic to Announce Q4 Results May 3   [Apr-06-17 09:00AM  Business Wire]
▶ Semi Stocks SWKS and CRUS Are Just Getting Warmed Up   [Apr-05-17 06:00AM  Investopedia]
▶ Bullish on Apple Inc? You'll Love These 3 Stocks   [Apr-04-17 07:26PM  Motley Fool]
▶ Apple suppliers upgraded on iPhone demand   [09:52AM  MarketWatch]
▶ These 5 High-Growth Chip Stocks Are Forming Bases Or Are In Buy Range   [Mar-26-17 10:58AM  Investor's Business Daily]
Financial statements of CRUS
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.