Semtech Corporation

DB:SM2 Stock Report

Market Cap: €5.3b

Semtech Valuation

Is SM2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SM2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SM2 (€61) is trading above our estimate of fair value (€52.17)

Significantly Below Fair Value: SM2 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SM2?

Key metric: As SM2 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SM2. This is calculated by dividing SM2's market cap by their current revenue.
What is SM2's PS Ratio?
PS Ratio6.4x
SalesUS$851.23m
Market CapUS$5.47b

Price to Sales Ratio vs Peers

How does SM2's PS Ratio compare to its peers?

The above table shows the PS ratio for SM2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.1x
ELG Elmos Semiconductor
1.9x5.4%€1.1b
IFX Infineon Technologies
2.7x6.8%€41.0b
SIS First Sensor
4.9xn/a€597.7m
AIXA AIXTRON
2.8x5.2%€1.7b
SM2 Semtech
6.4x18.6%€5.5b

Price-To-Sales vs Peers: SM2 is expensive based on its Price-To-Sales Ratio (6.4x) compared to the peer average (3.1x).

Price to Sales Ratio vs Industry

How does SM2's PS Ratio compare vs other companies in the DE Semiconductor Industry?

2 CompaniesPrice / SalesEstimated GrowthMarket Cap
M5Z Manz
0.07x1.9%US$15.04m
D0Q Sondrel (Holdings)
0.2xn/aUS$2.02m
No more companies available in this PS range
SM2 6.4xIndustry Avg. 1.7xNo. of Companies2PS012345+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SM2 is expensive based on its Price-To-Sales Ratio (6.4x) compared to the European Semiconductor industry average (1.7x).

Price to Sales Ratio vs Fair Ratio

What is SM2'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.

SM2 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.4x
Fair PS Ratio3.5x

Price-To-Sales vs Fair Ratio: SM2 is expensive based on its Price-To-Sales Ratio (6.4x) compared to the estimated Fair Price-To-Sales Ratio (3.5x).

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 SM2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€61.00
€70.70
+15.9%
8.5%€80.99€61.93n/a10
Dec ’25€60.50
€69.39
+14.7%
10.2%€81.13€57.27n/a10
Nov ’25€40.51
€50.20
+23.9%
17.0%€72.23€41.53n/a10
Oct ’25€40.65
€50.20
+23.5%
17.0%€72.23€41.53n/a10
Sep ’25€39.20
€50.20
+28.1%
17.0%€72.23€41.53n/a10
Aug ’25€29.33
€47.96
+63.5%
9.4%€55.55€41.66n/a10
Jul ’25€27.66
€47.96
+73.4%
9.4%€55.55€41.66n/a10
Jun ’25€35.56
€40.61
+14.2%
16.2%€55.31€33.18n/a10
May ’25€34.37
€38.19
+11.1%
10.5%€46.98€33.82n/a10
Apr ’25€25.80
€37.38
+44.9%
12.5%€46.55€28.86n/a10
Mar ’25€19.60
€28.73
+46.6%
17.6%€38.43€22.88n/a10
Feb ’25€18.40
€28.73
+56.2%
17.6%€38.43€22.88n/a10
Jan ’25€20.00
€28.25
+41.2%
20.6%€38.90€20.37n/a10
Dec ’24€15.00
€30.04
+100.3%
19.3%€42.26€22.05€60.5010
Nov ’24€13.10
€31.06
+137.1%
18.4%€43.43€23.60€40.5110
Oct ’24€24.60
€33.52
+36.2%
19.3%€46.05€28.19€40.659
Sep ’24€24.00
€35.26
+46.9%
23.1%€50.62€25.31€39.2010
Aug ’24€26.40
€35.26
+33.5%
23.1%€50.62€25.31€29.3310
Jul ’24€23.20
€35.32
+52.2%
22.3%€49.16€25.49€27.6610
Jun ’24€20.20
€36.76
+82.0%
28.6%€57.62€23.24€35.569
May ’24€17.90
€36.56
+104.3%
26.6%€56.51€25.52€34.379
Apr ’24€23.20
€38.28
+65.0%
25.1%€56.85€25.67€25.808
Mar ’24€29.00
€40.38
+39.2%
22.7%€59.85€30.40€19.608
Feb ’24€30.20
€40.38
+33.7%
22.7%€59.85€30.40€18.408
Jan ’24€26.60
€40.38
+51.8%
22.7%€59.85€30.40€20.008
Dec ’23€29.40
€40.38
+37.3%
22.7%€59.85€30.40€15.008

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 Analysis2024/12/26 10:33
End of Day Share Price 2024/12/23 00:00
Earnings2024/10/27
Annual Earnings2024/01/28

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

Semtech Corporation is covered by 29 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Tristan GerraBaird
Cody AcreeBenchmark Company
Sumit DhandaBofA Global Research