STMicroelectronics N.V.

DB:SGM Stock Report

Market Cap: €25.2b

STMicroelectronics Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow 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.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: SGM (€29) is trading above our estimate of future cash flow value (€26.3)

Significantly Below Future Cash Flow Value: SGM is trading above our estimate of future cash flow value.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for SGM. This is calculated by dividing SGM's market cap by their current revenue.
What is SGM's PS Ratio?
PS Ratio2.5x
SalesUS$11.80b
Market CapUS$29.85b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SGM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.6x
IFX Infineon Technologies
3.9x9.63%€59.7b
ELG Elmos Semiconductor
4.7x10.77%€2.5b
SIS First Sensor
5.6xn/a€572.8m
ON ON Semiconductor
4.4x8.02%US$26.2b
SGM STMicroelectronics
2.5x8.55%€25.2b

Price-To-Sales vs Peers: SGM is good value based on its Price-To-Sales Ratio (2.5x) compared to the peer average (4.7x).

Historical Price to Sales Ratio

Historical Price to Sales Ratio compares a stock's price to its sales over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Sales Ratio vs Industry

How does SGM's PS Ratio compare vs other companies in the DE Semiconductor Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
NW1 Windon Energy Group
0.3xn/aUS$13.37m
M5Z Manz
0.06x1.94%US$3.39m
D0Q Sondrel (Holdings)
0.2xn/aUS$2.02m
M5Z Manz
0.004xn/aUS$1.04m
No more companies available in this PS range
SGM 2.5xIndustry Avg. 2.5xNo. of Companies4PS0246810+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SGM is good value based on its Price-To-Sales Ratio (2.5x) compared to the European Semiconductor industry average (2.5x).

Price to Sales Ratio vs Fair Ratio

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

SGM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.5x
Fair PS Ratio2.6x

Price-To-Sales vs Fair Ratio: SGM is good value based on its Price-To-Sales Ratio (2.5x) compared to the estimated Fair Price-To-Sales Ratio (2.6x).

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
Current€29.00
€28.68
-1.09%
13.50%€35.13€21.11n/a21
Feb ’27€23.70
€27.27
+15.05%
11.43%€32.06€21.04n/a21
Jan ’27€22.23
€24.70
+11.13%
12.11%€30.11€19.83n/a19
Dec ’26€19.84
€24.63
+24.15%
11.31%€30.05€20.00n/a19
Nov ’26€21.38
€24.67
+15.42%
11.30%€30.08€20.02n/a19
Oct ’26€23.86
€26.39
+10.61%
9.73%€31.00€22.20n/a19
Sep ’26€23.18
€25.82
+11.40%
11.62%€31.05€20.09n/a20
Aug ’26€21.80
€26.09
+19.69%
11.62%€31.39€20.31n/a20
Jul ’26€25.98
€24.18
-6.93%
16.40%€30.88€15.41n/a21
Jun ’26€22.44
€23.57
+5.03%
13.11%€30.00€16.00n/a21
May ’26€20.10
€24.07
+19.77%
20.58%€41.92€15.90n/a22
Apr ’26€20.10
€25.74
+28.04%
21.02%€44.39€16.06n/a21
Mar ’26€23.62
€27.31
+15.64%
22.75%€46.18€16.03€29.0022
Feb ’26€21.61
€27.43
+26.93%
23.11%€46.20€16.04€23.7022
Jan ’26€24.21
€30.71
+26.86%
17.33%€46.02€20.92€22.2321
Dec ’25€23.81
€30.75
+29.15%
17.33%€45.26€20.58€19.8420
Nov ’25€24.86
€32.42
+30.46%
17.11%€48.10€25.05€21.3821
Oct ’25€26.23
€38.84
+48.10%
14.51%€50.54€28.01€23.8621
Sep ’25€28.11
€39.24
+39.59%
12.31%€49.51€33.00€23.1821
Aug ’25€30.54
€40.87
+33.83%
13.46%€53.50€34.09€21.8021
Jul ’25€37.09
€48.93
+31.93%
11.91%€59.85€37.09€25.9821
Jun ’25€37.58
€48.20
+28.25%
13.09%€58.98€32.55€22.4420
May ’25€37.78
€49.20
+30.24%
13.63%€60.01€33.12€20.1020
Apr ’25€40.04
€52.90
+32.13%
15.90%€75.24€34.52€20.1020
Mar ’25€42.70
€54.69
+28.09%
18.16%€77.20€34.56€23.6221
€29.28
Fair Value
1.0% undervalued intrinsic discount
21
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/03/02 19:50
End of Day Share Price 2026/02/27 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

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.

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 Github.

Analyst Sources

STMicroelectronics N.V. is covered by 46 analysts. 19 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
George ChangAletheia Analyst Network Limited
Alexi UngerArete Research Services LLP
Brett SimpsonArete Research Services LLP