Silicon Labs (SLAB): Examining Valuation After Series 3 SoCs Launch and Industry-First Certifications

Silicon Laboratories (SLAB) rolled out its Series 3 platform at the Works With Summit, launching the SiMG301 and SiBG301 SoCs. These chips bring upgrades to compute, integration, and security. The platform is underpinned by industry-first certifications for edge protection and smart home applications.

See our latest analysis for Silicon Laboratories.

Silicon Laboratories’ latest launches have given its momentum a noticeable boost, with a one-day share price return of nearly 5% following the Series 3 announcement. The stock’s year-to-date share price return stands at almost 10%, hinting at renewed optimism among investors. A robust 19% total shareholder return over the past year suggests longer-term holders are seeing meaningful gains as well.

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With strong gains over the past year and new products fueling investor enthusiasm, the question now is whether Silicon Laboratories’ shares still offer value, or if the latest growth story is already reflected in the price.

Most Popular Narrative: 8.7% Undervalued

Compared to Silicon Laboratories' last close price, the most cited narrative suggests the stock's fair value sits above current levels. This sets the stage for a deeper dive into the specific growth assumptions fueling the outlook.

Rapid expansion of smart home, healthcare, and industrial IoT deployments, including multiple large-scale customer production ramps and a deep design win pipeline, supports robust, multi-year revenue growth as the number of connected devices in these sectors accelerates.

Read the complete narrative.

Curious what’s really propelling this valuation? Behind the scenes, bold growth forecasts and ambitious profit turnaround targets drive the calculations. Want the complete playbook and to see if analyst projections really hold up? Explore the details behind this price call.

Result: Fair Value of $150.44 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, intensifying competition and possible industry commoditization could pressure Silicon Labs’ margins. This could potentially challenge assumptions behind the current undervalued outlook.

Find out about the key risks to this Silicon Laboratories narrative.

Another View: What Does the SWS DCF Model Say?

The SWS DCF model presents a contrasting picture and suggests that Silicon Laboratories could be trading above its intrinsic value. The estimated fair value of the company is $79.67, while today’s price stands at $137.29. This difference raises the question of whether the market’s optimism may be outpacing the company’s fundamentals.

Look into how the SWS DCF model arrives at its fair value.

Build Your Own Silicon Laboratories Narrative

If you’d like to review the facts and shape your own story, you can examine the numbers and build a custom narrative yourself in just a few minutes. Do it your way

A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding Silicon Laboratories.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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