Intrinsic value of STMicroelectronics - STM

Previous Close

$14.00

  Intrinsic Value

$739.48

stock screener

  Rating & Target

str. buy

+999%

Previous close

$14.00

 
Intrinsic value

$739.48

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of STM 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 0001), $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 1.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  19.70
  18.23
  16.91
  15.72
  14.64
  13.68
  12.81
  12.03
  11.33
  10.70
  10.13
  9.61
  9.15
  8.74
  8.36
  8.03
  7.72
  7.45
  7.21
  6.99
  6.79
  6.61
  6.45
  6.30
  6.17
  6.06
  5.95
  5.85
  5.77
  5.69
Revenue, $m
  9,991
  11,813
  13,810
  15,980
  18,321
  20,827
  23,495
  26,322
  29,304
  32,438
  35,722
  39,156
  42,740
  46,474
  50,360
  54,403
  58,605
  62,972
  67,510
  72,226
  77,128
  82,225
  87,526
  93,043
  98,786
  104,768
  111,001
  117,500
  124,279
  131,354
Variable operating expenses, $m
  4,320
  5,101
  5,958
  6,889
  7,893
  8,968
  10,113
  11,326
  12,605
  13,950
  15,326
  16,799
  18,336
  19,938
  21,606
  23,340
  25,143
  27,016
  28,963
  30,986
  33,090
  35,276
  37,551
  39,917
  42,381
  44,948
  47,622
  50,410
  53,319
  56,354
Fixed operating expenses, $m
  3,905
  3,991
  4,079
  4,169
  4,260
  4,354
  4,450
  4,548
  4,648
  4,750
  4,854
  4,961
  5,070
  5,182
  5,296
  5,412
  5,531
  5,653
  5,778
  5,905
  6,035
  6,167
  6,303
  6,442
  6,583
  6,728
  6,876
  7,028
  7,182
  7,340
Total operating expenses, $m
  8,225
  9,092
  10,037
  11,058
  12,153
  13,322
  14,563
  15,874
  17,253
  18,700
  20,180
  21,760
  23,406
  25,120
  26,902
  28,752
  30,674
  32,669
  34,741
  36,891
  39,125
  41,443
  43,854
  46,359
  48,964
  51,676
  54,498
  57,438
  60,501
  63,694
Operating income, $m
  1,767
  2,721
  3,773
  4,923
  6,167
  7,505
  8,932
  10,448
  12,051
  13,738
  15,542
  17,396
  19,333
  21,354
  23,459
  25,650
  27,930
  30,302
  32,769
  35,335
  38,004
  40,781
  43,672
  46,684
  49,821
  53,092
  56,503
  60,062
  63,778
  67,660
EBITDA, $m
  2,483
  3,562
  4,751
  6,049
  7,454
  8,962
  10,573
  12,282
  14,089
  15,990
  17,986
  20,075
  22,257
  24,532
  26,903
  29,371
  31,939
  34,609
  37,387
  40,275
  43,279
  46,405
  49,659
  53,048
  56,578
  60,258
  64,095
  68,099
  72,279
  76,644
Interest expense (income), $m
  13
  92
  136
  185
  239
  297
  360
  428
  500
  576
  656
  740
  829
  921
  1,017
  1,118
  1,222
  1,331
  1,444
  1,562
  1,684
  1,811
  1,943
  2,080
  2,223
  2,371
  2,525
  2,686
  2,854
  3,029
  3,211
Earnings before tax, $m
  1,675
  2,585
  3,588
  4,684
  5,870
  7,144
  8,505
  9,949
  11,475
  13,082
  14,802
  16,568
  18,412
  20,336
  22,341
  24,428
  26,599
  28,858
  31,207
  33,651
  36,193
  38,838
  41,593
  44,461
  47,450
  50,566
  53,817
  57,208
  60,749
  64,448
Tax expense, $m
  452
  698
  969
  1,265
  1,585
  1,929
  2,296
  2,686
  3,098
  3,532
  3,997
  4,473
  4,971
  5,491
  6,032
  6,596
  7,182
  7,792
  8,426
  9,086
  9,772
  10,486
  11,230
  12,005
  12,812
  13,653
  14,530
  15,446
  16,402
  17,401
Net income, $m
  1,223
  1,887
  2,619
  3,419
  4,285
  5,215
  6,208
  7,263
  8,377
  9,550
  10,806
  12,094
  13,441
  14,845
  16,309
  17,832
  19,417
  21,066
  22,781
  24,565
  26,421
  28,352
  30,363
  32,457
  34,639
  36,913
  39,286
  41,762
  44,347
  47,047

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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
Total assets, $m
  11,239
  13,288
  15,534
  17,976
  20,608
  23,427
  26,429
  29,609
  32,963
  36,488
  40,183
  44,045
  48,076
  52,277
  56,648
  61,195
  65,922
  70,834
  75,939
  81,244
  86,758
  92,491
  98,455
  104,660
  111,120
  117,849
  124,861
  132,171
  139,797
  147,754
Adjusted assets (=assets-cash), $m
  11,239
  13,288
  15,534
  17,976
  20,608
  23,427
  26,429
  29,609
  32,963
  36,488
  40,183
  44,045
  48,076
  52,277
  56,648
  61,195
  65,922
  70,834
  75,939
  81,244
  86,758
  92,491
  98,455
  104,660
  111,120
  117,849
  124,861
  132,171
  139,797
  147,754
Revenue / Adjusted assets
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
  0.889
Average production assets, $m
  3,417
  4,040
  4,723
  5,465
  6,266
  7,123
  8,035
  9,002
  10,022
  11,094
  12,217
  13,391
  14,617
  15,894
  17,223
  18,606
  20,043
  21,536
  23,088
  24,701
  26,378
  28,121
  29,934
  31,821
  33,785
  35,831
  37,962
  40,185
  42,503
  44,923
Working capital, $m
  1,209
  1,429
  1,671
  1,934
  2,217
  2,520
  2,843
  3,185
  3,546
  3,925
  4,322
  4,738
  5,172
  5,623
  6,094
  6,583
  7,091
  7,620
  8,169
  8,739
  9,332
  9,949
  10,591
  11,258
  11,953
  12,677
  13,431
  14,218
  15,038
  15,894
Total debt, $m
  2,521
  3,428
  4,424
  5,505
  6,671
  7,920
  9,250
  10,659
  12,144
  13,706
  15,343
  17,054
  18,840
  20,701
  22,637
  24,652
  26,745
  28,922
  31,183
  33,533
  35,976
  38,516
  41,157
  43,906
  46,768
  49,749
  52,855
  56,094
  59,472
  62,997
Total liabilities, $m
  4,979
  5,886
  6,882
  7,963
  9,129
  10,378
  11,708
  13,117
  14,602
  16,164
  17,801
  19,512
  21,298
  23,159
  25,095
  27,110
  29,203
  31,380
  33,641
  35,991
  38,434
  40,974
  43,615
  46,364
  49,226
  52,207
  55,313
  58,552
  61,930
  65,455
Total equity, $m
  6,260
  7,401
  8,653
  10,012
  11,479
  13,049
  14,721
  16,492
  18,360
  20,324
  22,382
  24,533
  26,779
  29,118
  31,553
  34,086
  36,719
  39,455
  42,298
  45,253
  48,324
  51,518
  54,839
  58,296
  61,894
  65,642
  69,547
  73,619
  77,867
  82,299
Total liabilities and equity, $m
  11,239
  13,287
  15,535
  17,975
  20,608
  23,427
  26,429
  29,609
  32,962
  36,488
  40,183
  44,045
  48,077
  52,277
  56,648
  61,196
  65,922
  70,835
  75,939
  81,244
  86,758
  92,492
  98,454
  104,660
  111,120
  117,849
  124,860
  132,171
  139,797
  147,754
Debt-to-equity ratio
  0.400
  0.460
  0.510
  0.550
  0.580
  0.610
  0.630
  0.650
  0.660
  0.670
  0.690
  0.700
  0.700
  0.710
  0.720
  0.720
  0.730
  0.730
  0.740
  0.740
  0.740
  0.750
  0.750
  0.750
  0.760
  0.760
  0.760
  0.760
  0.760
  0.770
Adjusted equity ratio
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557
  0.557

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,223
  1,887
  2,619
  3,419
  4,285
  5,215
  6,208
  7,263
  8,377
  9,550
  10,806
  12,094
  13,441
  14,845
  16,309
  17,832
  19,417
  21,066
  22,781
  24,565
  26,421
  28,352
  30,363
  32,457
  34,639
  36,913
  39,286
  41,762
  44,347
  47,047
Depreciation, amort., depletion, $m
  717
  841
  978
  1,126
  1,286
  1,458
  1,640
  1,834
  2,038
  2,252
  2,443
  2,678
  2,923
  3,179
  3,445
  3,721
  4,009
  4,307
  4,618
  4,940
  5,276
  5,624
  5,987
  6,364
  6,757
  7,166
  7,592
  8,037
  8,501
  8,985
Funds from operations, $m
  1,939
  2,728
  3,597
  4,545
  5,571
  6,673
  7,849
  9,096
  10,415
  11,802
  13,249
  14,773
  16,364
  18,024
  19,754
  21,553
  23,426
  25,374
  27,399
  29,505
  31,696
  33,976
  36,349
  38,821
  41,396
  44,080
  46,879
  49,799
  52,848
  56,032
Change in working capital, $m
  199
  220
  242
  263
  283
  303
  323
  342
  361
  379
  397
  416
  434
  452
  470
  489
  508
  528
  549
  571
  593
  617
  641
  668
  695
  724
  754
  786
  820
  856
Cash from operations, $m
  1,740
  2,508
  3,355
  4,283
  5,288
  6,370
  7,526
  8,754
  10,054
  11,423
  12,852
  14,357
  15,931
  17,572
  19,283
  21,064
  22,918
  24,845
  26,850
  28,935
  31,103
  33,359
  35,708
  38,153
  40,701
  43,356
  46,124
  49,013
  52,027
  55,176
Maintenance CAPEX, $m
  -570
  -683
  -808
  -945
  -1,093
  -1,253
  -1,425
  -1,607
  -1,800
  -2,004
  -2,219
  -2,443
  -2,678
  -2,923
  -3,179
  -3,445
  -3,721
  -4,009
  -4,307
  -4,618
  -4,940
  -5,276
  -5,624
  -5,987
  -6,364
  -6,757
  -7,166
  -7,592
  -8,037
  -8,501
New CAPEX, $m
  -566
  -623
  -683
  -742
  -800
  -857
  -913
  -967
  -1,020
  -1,072
  -1,123
  -1,174
  -1,226
  -1,277
  -1,329
  -1,382
  -1,437
  -1,493
  -1,552
  -1,613
  -1,677
  -1,743
  -1,813
  -1,887
  -1,964
  -2,046
  -2,132
  -2,223
  -2,318
  -2,419
Cash from investing activities, $m
  -1,136
  -1,306
  -1,491
  -1,687
  -1,893
  -2,110
  -2,338
  -2,574
  -2,820
  -3,076
  -3,342
  -3,617
  -3,904
  -4,200
  -4,508
  -4,827
  -5,158
  -5,502
  -5,859
  -6,231
  -6,617
  -7,019
  -7,437
  -7,874
  -8,328
  -8,803
  -9,298
  -9,815
  -10,355
  -10,920
Free cash flow, $m
  604
  1,201
  1,864
  2,596
  3,395
  4,260
  5,189
  6,181
  7,234
  8,347
  9,509
  10,739
  12,027
  13,372
  14,775
  16,237
  17,759
  19,343
  20,991
  22,704
  24,486
  26,341
  28,271
  30,280
  32,372
  34,553
  36,826
  39,198
  41,672
  44,256
Issuance/(repayment) of debt, $m
  820
  908
  995
  1,082
  1,166
  1,249
  1,330
  1,409
  1,486
  1,562
  1,637
  1,711
  1,786
  1,861
  1,937
  2,014
  2,094
  2,176
  2,261
  2,350
  2,443
  2,540
  2,642
  2,749
  2,862
  2,981
  3,106
  3,238
  3,378
  3,525
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  820
  908
  995
  1,082
  1,166
  1,249
  1,330
  1,409
  1,486
  1,562
  1,637
  1,711
  1,786
  1,861
  1,937
  2,014
  2,094
  2,176
  2,261
  2,350
  2,443
  2,540
  2,642
  2,749
  2,862
  2,981
  3,106
  3,238
  3,378
  3,525
Total cash flow (excl. dividends), $m
  1,424
  2,109
  2,860
  3,678
  4,561
  5,508
  6,518
  7,589
  8,719
  9,908
  11,146
  12,451
  13,813
  15,233
  16,712
  18,252
  19,853
  21,519
  23,252
  25,054
  26,929
  28,881
  30,912
  33,029
  35,234
  37,534
  39,933
  42,436
  45,050
  47,781
Retained Cash Flow (-), $m
  -1,026
  -1,141
  -1,251
  -1,360
  -1,466
  -1,570
  -1,672
  -1,771
  -1,868
  -1,964
  -2,058
  -2,152
  -2,245
  -2,340
  -2,435
  -2,533
  -2,633
  -2,736
  -2,843
  -2,955
  -3,071
  -3,193
  -3,322
  -3,456
  -3,598
  -3,748
  -3,906
  -4,072
  -4,247
  -4,432
Prev. year cash balance distribution, $m
  170
  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
  568
  968
  1,608
  2,318
  3,095
  3,938
  4,847
  5,818
  6,851
  7,945
  9,088
  10,299
  11,567
  12,893
  14,277
  15,719
  17,221
  18,783
  20,409
  22,099
  23,858
  25,687
  27,591
  29,572
  31,636
  33,786
  36,027
  38,364
  40,803
  43,349
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
  545
  886
  1,400
  1,908
  2,399
  2,858
  3,274
  3,636
  3,936
  4,165
  4,316
  4,395
  4,398
  4,328
  4,191
  3,995
  3,747
  3,459
  3,142
  2,808
  2,468
  2,131
  1,808
  1,506
  1,231
  986
  773
  594
  445
  326
Current shareholders' claim on cash, %
  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

STMicroelectronics N.V. is a global semiconductor company that designs, develops, manufactures and markets a range of products, including discrete and standard commodity components, and application-specific integrated circuits (ASICs) for analog, digital and mixed-signal applications. The Company's segments include Automotive and Discrete Group (ADG), Analog and MEMS Group (AMG), Microcontrollers and Digital ICs Group (MDG), and Others. ADG comprises all dedicated automotive Integrated Circuits (ICs), and discrete and power transistor products. AMG includes low-power analog ICs for all markets; smart power products; Touch Screen Controllers; Low Power Connectivity solutions for Internet of Things (IoT), and power conversion products. MDG comprises general purpose and secure microcontrollers, and Electrically Erasable Programmable Read-Only Memory memories. The Others segment includes all the financial values related to the Imaging Product Division, Subsystems and other products.

FINANCIAL RATIOS  of  STMicroelectronics (STM)

Valuation Ratios
P/E Ratio 75
Price to Sales 1.8
Price to Book 2.7
Price to Tangible Book
Price to Cash Flow 11.9
Price to Free Cash Flow 32
Growth Rates
Sales Growth Rate 1.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 15.6%
Cap. Spend. - 3 Yr. Gr. Rate 0.6%
Financial Strength
Quick Ratio 17
Current Ratio 0.2
LT Debt to Equity 29.4%
Total Debt to Equity 32%
Interest Coverage 16
Management Effectiveness
Return On Assets 2.2%
Ret/ On Assets - 3 Yr. Avg. 1.7%
Return On Total Capital 2.7%
Ret/ On T. Cap. - 3 Yr. Avg. 2.1%
Return On Equity 3.6%
Return On Equity - 3 Yr. Avg. 2.7%
Asset Turnover 0.9
Profitability Ratios
Gross Margin 35.2%
Gross Margin - 3 Yr. Avg. 34.3%
EBITDA Margin 13.1%
EBITDA Margin - 3 Yr. Avg. 12.6%
Operating Margin 3.1%
Oper. Margin - 3 Yr. Avg. 2.3%
Pre-Tax Margin 2.9%
Pre-Tax Margin - 3 Yr. Avg. 1.9%
Net Profit Margin 2.4%
Net Profit Margin - 3 Yr. Avg. 1.9%
Effective Tax Rate 15.4%
Eff/ Tax Rate - 3 Yr. Avg. -10%
Payout Ratio 152.1%

STM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the STM stock intrinsic value calculation we used $8347 million for the last fiscal year's total revenue generated by STMicroelectronics. The default revenue input number comes from 0001 income statement of STMicroelectronics. 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 STM stock valuation model: a) initial revenue growth rate of 19.7% 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 STM is calculated based on our internal credit rating of STMicroelectronics, 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 STMicroelectronics.
    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 STM stock the variable cost ratio is equal to 43.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $3821 million in the base year in the intrinsic value calculation for STM 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 5.4% for STMicroelectronics.

Corporate tax rate of 27% is the nominal tax rate for STMicroelectronics. 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 STM 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 STM are equal to 34.2%.

Life of production assets of 4.6 years is the average useful life of capital assets used in STMicroelectronics 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 STM is equal to 12.1%. 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 - $5404 million for STMicroelectronics - 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 103.787 million for STMicroelectronics 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 STMicroelectronics at the current share price and the inputted number of shares is $1.5 billion.

RELATED COMPANIES Price Int.Val. Rating
SMTC Semtech 45.51 20.82  str.sell
TXN Texas Instrume 94.48 122.57  hold
NXPI NXP Semiconduc 81.75 35.85  str.sell
ON ON Semiconduct 17.35 29.83  buy

COMPANY NEWS

▶ How STMicroelectronics NV Shares Fell 17% Last Month   [Nov-12-18 04:35PM  Motley Fool]
▶ Dont Buy Micron Stock Just Yet   [Nov-06-18 10:21AM  InvestorPlace]
▶ 5 Stocks to Sell for the End of the iPhone Era   [Nov-02-18 03:47PM  InvestorPlace]
▶ Its Time to Sell Nvidia Stock on Bounces   [12:52PM  InvestorPlace]
▶ Trade of the Day: Semtech Corp (SMTC)   [09:41AM  InvestorPlace]
▶ Stock Market News For Oct 25, 2018   [Oct-25-18 09:43AM  Zacks]
▶ Silicon Labs, STMicroelectronics Latest Chipmakers To Guide Lower   [Oct-24-18 04:40PM  Investor's Business Daily]
▶ 3 Stocks Decline on Wednesday   [04:31PM  GuruFocus.com]
▶ Bears Grab Control Of Stock Market, But Volume Fades   [11:58AM  Investor's Business Daily]
▶ Stocks Open Mixed As Boeing Leads, Chip Stocks Slide   [09:39AM  Investor's Business Daily]
▶ STMicroelectronics: 3Q Earnings Snapshot   [05:03AM  Associated Press]
▶ [$$] STMicro Confirms Outlook as Profit Rises   [01:37AM  The Wall Street Journal]
▶ Chip Stocks Face Wall Of Worry In Third-Quarter Reporting Period   [Oct-22-18 05:57PM  Investor's Business Daily]
▶ 3 Stocks Poised To Rise On Apple's Supercycle   [Sep-21-18 02:00PM  Investopedia]
▶ 8 Semiconductor Stocks Powering Down   [Sep-11-18 03:42PM  InvestorPlace]
▶ A Look At The Fair Value Of STMicroelectronics NV (EPA:STM)   [Sep-09-18 03:37AM  Simply Wall St.]
▶ STMicroelectronics Publishes IFRS 2018 Semi Annual Accounts   [Aug-22-18 04:46PM  GlobeNewswire]
▶ Apple, Indexes Fall On Turkey Fear; These 6 Stocks Hit Sell Signals   [Aug-10-18 03:45PM  Investor's Business Daily]
▶ STMicroelectronics: 2Q Earnings Snapshot   [Jul-25-18 05:01AM  Associated Press]
▶ Earnings Preview For STMicroelectronics   [Jul-24-18 04:09PM  Benzinga]
▶ How Apples New iPhone Threatens Verizon, AT&T   [Jul-16-18 06:00AM  Investopedia]
▶ Should You Be Holding STMicroelectronics NV. (EPA:STM)?   [Jun-14-18 03:37AM  Simply Wall St.]
▶ STMicroelectronics announces Executive Committee   [May-31-18 08:01AM  GlobeNewswire]
▶ STMicroelectronics Clears Key Benchmark, Hitting 80-Plus RS Rating   [May-25-18 03:00AM  Investor's Business Daily]
▶ STMicroelectronics to Webcast Capital Markets Day   [May-07-18 09:01AM  GlobeNewswire]
▶ Chipmakers Silicon Labs, STMicro Deliver Upbeat Quarterly Reports   [Apr-25-18 04:51PM  Investor's Business Daily]

CONTACT US       ASSET ALLOCATION

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

Copyright © X-FIN.com 2005-2018. All rigths reserved.