Maxim Integrated Products, Inc. designs, develops, manufactures, and markets a range of linear and mixed-signal integrated circuits in the United States, China, rest of Asia, Europe, and internationally. More info.
The calculations below outline how an intrinsic value for
Maxim Integrated Products
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$845.81||$854.81||$948.60||$930.87||$913.47|
|Source||Analyst x9||Analyst x8||Analyst x2||Extrapolated @ (-1.87%)||Extrapolated @ (-1.87%)|
Discounted (@ 10.21%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $913 × (1 + 2.47%) ÷ (10.21% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$10,817 = $3,373 + $7,444
Value = Total value / Shares Outstanding ($10,817 / 281)Discount to Share Price
Value per share:
Current discount (share price of $61.26): -59.26%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 10.21% = 2.47% + (1.027 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($17,227,170,742).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.027 = 0.977 (1 + (1- 40%) (8.64%))
Levered Beta used in calculation = 1.027
Purchase Maxim Integrated Products on or before the 'Buy Limit' to receive their next dividend payment.
Mr. Tunç Doluca has been the President and the Chief Executive Officer of Maxim Integrated Products, Inc. since January 1, 2007. Mr. Doluca served as Group President of Maxim Integrated Products Inc., since May 2005 and its Senior Vice President since 2004. He joined Maxim Integrated Products Inc., in October 1984 as a member of its integrated circuit design development staff and then served as its Vice President since of R& D from July 1994 to 2004. At that time, he designed the industry's first high-integration, notebook power-supply IC (the MAX786), and designed ICs until 1996. While at Maxim, Mr. Doluca personally designed over 40 products and holds 11 patents. In 1994, he became the leader of first vertical business unit for portable power-management products. Mr. Doluca established the first vertical business unit at Maxim, focused on portable power management products, now a significant revenue generator for Maxim Integrated Products Inc. He also served as Maxim's Vice President of Research and Development before his Business Unit responsibility. He holds eleven mixed signal design patents. Mr. Doluca has been a Director of Semiconductor Industry Association since June 2011 and Maxim Integrated Products Inc. since January 2007. Mr. Doluca attended the Middle East Technical University in Ankara and holds a BSEE degree from Iowa State University and an MSEE degree from University of California, Santa Barbara.
Average tenure and age of the Maxim Integrated Products management team in years:
Average tenure and age of the Maxim Integrated Products board of directors in years:
To help investors get a top level understanding, I will try to evaluate Maxim Integrated Products's margin behaviour so investors can evaluate the revenue and cost drivers behind future earnings projections and understand how they may impact on returns compared to the industry. … Margin Calculation for MXIM Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 383.04 Million ÷ 2.38 Billion = 16.08% Maxim Integrated Products's margin has contracted in the past five years, as a result of net income declining at -1.70% on average, which was faster than the average fall in revenue of -1.42%, which suggests that the falling revenue has also resulted in a decline in the net income that is converted from from the top line. … Understanding what could be driving Maxim Integrated Products's future earnings Forward looking projections suggest margins will reverse its previous trend and start to expand, with annual revenue growth tipped at 4.21% and a forecasted 39.07% in annual net income growth.Simply Wall St - – Full article
View our latest analysis for Maxim Integrated Products How I analyze a dividend stock If you are a dividend investor, you should always assess these five key metrics: Is it paying an annual yield above 75% of dividend payers? … Compared to its peers, Maxim Integrated Products produces a yield of 2.56%, which is high for Semiconductor stocks but still below the market's top dividend payers. … Next Steps: Taking into account the dividend metrics, Maxim Integrated Products ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers.Simply Wall St - – Full article
NasdaqGS:MXIM Historical Debt Jan 4th 18 A simple way to determine whether the company has put debt into good use is to look at its operating cash flow against its debt obligation. … In the case of MXIM, operating cash flow turned out to be 0.58x its debt level over the past twelve months. … MXIM’s high cash coverage means that, although its debt levels are high, investors shouldn’t panic since the company is able to utilise its borrowings efficiently in order to generate cash flow.Simply Wall St - – Full article
In this article I am going to calculate the intrinsic value of Maxim Integrated Products Inc (NASDAQ:MXIM) by estimating the company's future cash flows and discounting them to their present value. … 5-year cash flow estimate 2017 2018 2019 2020 2021 Levered FCF (USD, Millions) $732.79 $831.86 $845.02 $828.16 $811.64 Source Analyst x9 Analyst x8 Analyst x8 Extrapolated @ (-2%) Extrapolated @ (-2%) Present Value Discounted @ 9.98% $666.31 $687.77 $635.27 $566.11 $504.48 Present Value of 5-year Cash Flow (PVCF)= $3,060 We now need to calculate the Terminal Value, which accounts for all the future cash flows after the five years. … NasdaqGS:MXIM Intrinsic Value Dec 14th 17 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.Simply Wall St - – Full article
MXIM's future growth prospect aligns with that of the broader market and it is trading in-line with its peers. … If you like its growth prospects, you’ll be paying a fair value for the company, given that it is trading relatively in-line with its peers. … Use our free playform to see my list of over 1000 other tech companies trading on the market.Simply Wall St - – Full article
This means that the opportunity to buy MXIM at a good price has disappeared! … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at MXIM future expectations. … MXIM’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value.Simply Wall St - – Full article
Today I will run you through a basic sense check to gain perspective on how Maxim Integrated Products is doing by comparing its latest earnings with its long-term trend as well as the performance of its semiconductors and semiconductor equipment industry peers. … Maxim Integrated Products's latest twelve-month earnings is $589M, which, relative to last year’s level, has moved up by 35.32%. … Well, let’s take a look at whether it is merely attributable to an industry uplift, or if Maxim Integrated Products has seen some company-specific growth.Simply Wall St - – Full article
Maxim Integrated Products, Inc. designs, develops, manufactures, and markets a range of linear and mixed-signal integrated circuits in the United States, China, rest of Asia, Europe, and internationally. The company also provides a range of high-frequency process technologies and capabilities for use in custom designs. It serves automotive, communications and data center, computing, consumer, and industrial markets. The company markets its products through a direct-sales and applications organization, as well as through its own and other unaffiliated distribution channels. Maxim Integrated Products, Inc. was founded in 1983 and is headquartered in San Jose, California.
|Name:||Maxim Integrated Products, Inc.|
Maxim Integrated Products, Inc.
160 Rio Robles,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NasdaqGS||MXIM||Common Stock||Nasdaq Global Select||US||USD||29. Feb 1988|
|DB||MXI||Common Stock||Deutsche Boerse AG||DE||EUR||29. Feb 1988|
|LSE||0JZM||Common Stock||London Stock Exchange||GB||USD||29. Feb 1988|
|WBAG||MXIM||Common Stock||Wiener Boerse AG||AT||EUR||29. Feb 1988|
|Company Analysis updated:||2018/02/18|
|Last estimates confirmation:||2018/01/30|
|Last earnings update:||2017/12/30|
|Last annual earnings update:||2017/06/24|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.