STMicroelectronics N.V.

BRSE:SGM Stock Report

Market Cap: CHF 21.0b

STMicroelectronics Valuation

Is SGM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SGM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SGM (CHF23.24) is trading below our estimate of fair value (CHF25.06)

Significantly Below Fair Value: SGM is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SGM?

Key metric: As SGM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SGM. This is calculated by dividing SGM's market cap by their current earnings.
What is SGM's PE Ratio?
PE Ratio11.3x
EarningsUS$2.07b
Market CapUS$23.37b

Price to Earnings Ratio vs Peers

How does SGM's PE Ratio compare to its peers?

The above table shows the PE ratio for SGM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.2x
6723 Renesas Electronics
13.5x10.2%JP¥3.6t
GFS GlobalFoundries
31.6x22.5%US$24.2b
ON ON Semiconductor
15.7x14.7%US$28.8b
FSLR First Solar
15.8x27.5%US$20.2b
SGM STMicroelectronics
11.3x8.5%CHF 22.5b

Price-To-Earnings vs Peers: SGM is good value based on its Price-To-Earnings Ratio (11.3x) compared to the peer average (19.2x).

Price to Earnings Ratio vs Industry

How does SGM's PE Ratio compare vs other companies in the European Semiconductor Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SGM 11.3xIndustry Avg. 18.3xNo. of Companies6PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SGM is good value based on its Price-To-Earnings Ratio (11.3x) compared to the European Semiconductor industry average (18.1x).

Price to Earnings Ratio vs Fair Ratio

What is SGM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SGM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SGM's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SGM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 23.24
CHF 28.39
+22.2%
13.9%CHF 37.88CHF 19.61n/a21
Dec ’25n/a
CHF 28.18
0%
14.2%CHF 37.03CHF 19.17n/a20
Nov ’25CHF 23.29
CHF 30.59
+31.4%
17.1%CHF 45.38CHF 23.63n/a21
Oct ’25CHF 25.61
CHF 36.60
+42.9%
14.5%CHF 47.63CHF 26.39n/a21
Sep ’25n/a
CHF 36.93
0%
12.3%CHF 46.60CHF 31.06n/a21
Aug ’25CHF 30.00
CHF 38.84
+29.5%
13.5%CHF 50.85CHF 32.40n/a21
Jul ’25n/a
CHF 47.06
0%
11.9%CHF 57.57CHF 35.68n/a21
Jun ’25n/a
CHF 47.74
0%
13.1%CHF 58.42CHF 32.24n/a20
May ’25n/a
CHF 48.28
0%
13.6%CHF 58.88CHF 32.50n/a20
Apr ’25CHF 39.50
CHF 51.81
+31.2%
15.9%CHF 73.67CHF 33.81n/a20
Mar ’25CHF 39.49
CHF 52.06
+31.8%
18.2%CHF 73.48CHF 32.89n/a21
Feb ’25CHF 38.04
CHF 49.55
+30.2%
16.3%CHF 70.19CHF 32.21n/a20
Jan ’25n/a
CHF 49.32
0%
19.9%CHF 73.70CHF 31.65n/a20
Dec ’24n/a
CHF 50.08
0%
16.9%CHF 64.92CHF 32.83n/a21
Nov ’24n/a
CHF 51.57
0%
16.9%CHF 67.31CHF 34.03CHF 23.2922
Oct ’24n/a
CHF 56.44
0%
18.4%CHF 77.72CHF 34.32CHF 25.6122
Sep ’24n/a
CHF 54.48
0%
18.5%CHF 74.60CHF 32.94n/a22
Aug ’24n/a
CHF 54.10
0%
18.6%CHF 74.05CHF 32.70CHF 30.0022
Jul ’24n/a
CHF 51.27
0%
20.8%CHF 71.99CHF 31.57n/a24
Jun ’24n/a
CHF 51.89
0%
20.8%CHF 72.79CHF 31.92n/a24
May ’24n/a
CHF 51.16
0%
20.8%CHF 72.01CHF 31.52n/a24
Apr ’24CHF 47.88
CHF 52.20
+9.0%
22.6%CHF 82.49CHF 30.96CHF 39.5024
Mar ’24n/a
CHF 54.18
0%
21.2%CHF 84.14CHF 33.42CHF 39.4923
Feb ’24n/a
CHF 52.44
0%
21.6%CHF 81.92CHF 32.54CHF 38.0423
Jan ’24n/a
CHF 46.25
0%
22.2%CHF 65.73CHF 22.49n/a21
Dec ’23n/a
CHF 45.91
0%
21.8%CHF 66.44CHF 22.73n/a21

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 07:02
End of Day Share Price 2024/12/16 00:00
Earnings2024/09/28
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

STMicroelectronics N.V. is covered by 59 analysts. 17 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Robin van den BroekABN AMRO Bank N.V.
null Equity TeamActinvest Group Ltd.
Charles BordesAlphaValue