Simply Wall St
5 min read
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If you are looking at Cirrus Logic and wondering whether the current share price lines up with the underlying value, this breakdown is designed to help you make sense of that question in a straightforward way.
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The stock last closed at US$123.21, with total returns of 1.2% over 7 days, 1.7% over 30 days, 3.0% year to date, 22.0% over 1 year, 42.8% over 3 years and 25.0% over 5 years. This gives useful context before comparing the price to fundamentals.
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Recent attention on Cirrus Logic has been driven in part by its position within the semiconductor space, where investors often focus on demand for mobile and audio chips and the strength of customer relationships. News coverage has highlighted how companies exposed to these themes can attract interest when the market reassesses growth potential or risk around key end markets.
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Simply Wall St gives Cirrus Logic a valuation score of 2 out of 6, meaning it screens as undervalued on 2 of 6 checks. Next we will look at what various valuation approaches suggest about the stock today before circling back to an even richer way to think about value at the end of the article.
Cirrus Logic scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
A Discounted Cash Flow, or DCF, model takes estimates of the cash a company may generate in the future and discounts those back to what they could be worth today. It is essentially a way of translating future free cash flows into a single present value number.
For Cirrus Logic, the latest twelve month Free Cash Flow is about $524.8 million. The model used here is a 2 Stage Free Cash Flow to Equity approach, which starts with more detailed near term projections and then tapers into extrapolated estimates. For example, Simply Wall St shows forecast free cash flow of $369.8 million in 2026 and $392.3 million in 2028. Further out, extrapolated figures run to 2035, with discounted values applied to each projected year.
When all of those discounted cash flows are added together, the estimated intrinsic value comes out at about $91.73 per share. Compared with the recent share price of $123.21, the DCF output suggests Cirrus Logic is around 34.3% overvalued on this model.
Result: OVERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Cirrus Logic may be overvalued by 34.3%. Discover 872 undervalued stocks or create your own screener to find better value opportunities.