STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and markets semiconductor products, and subsystems and modules worldwide. More info.
The calculations below outline how an intrinsic value for
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)||$872.73||$1,069.03||$1,069.00||$1,040.61||$1,012.97|
|Source||Analyst x4||Analyst x4||Analyst x1||Extrapolated @ (-2.66%)||Extrapolated @ (-2.66%)|
Discounted (@ 10.35%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $1,013 × (1 + 2.47%) ÷ (10.35% – 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 +
$11,834 = $3,785 + $8,049
Value = Total value / Shares Outstanding ($11,834 / 851)Discount to Share Price
Value per share:
Current discount (share price of $23.16): -66.47%
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 = 10.35% = 2.47% + (1.047 * 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 (€16,023,613,157).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.047 = 0.977 (1 + (1- 17.77%) (8.64%))
Levered Beta used in calculation = 1.047
If the companies market cap is in a different currency to that of the listing the equivalent number of shares outstanding must be calculated.
Market Cap (EUR): €16,023,613,157Exchange rate EUR/USD = 0.813
Market Cap (USD): $19,699,549,000
Equivalent shares outstanding: $19,699,549,000 / $23.16 = $851
Purchase STMicroelectronics on or before the 'Buy Limit' to receive their next dividend payment.
Mr. Carlo Bozotti has been the Chairman of Management Board, Chief Executive Officer and President at STMicroelectronics N.V., since March 18, 2005 and its Member of the Managing Board since February 2005. Mr. Bozotti served as a Corporate Vice President of Memory Products at STMicroelectronics N.V. since August, 1998 until 2005 after served as Corporate Vice President of Europe and Headquarters Region from 1994 to 1998. He has been at the forefront of enabling Smart Driving and the Internet of Things through innovative chip design and delivery. He served as a Product Manager for the Industrial, Computer Peripheral and Telecom divisions and as Product Manager of the Monolithic Microsystems' Telecom business unit from 1986 to 1987. Mr. Bozotti served as a Director of Corporate Strategic Marketing and Key Accounts for the Headquarters Region in 1988 and became Vice President, Marketing and Sales, Americas Division at STMicroelectronics N.V. in 1991. He served as Vice Chairman at ST-Ericsson NV. He serves as Director at Aricent Inc. He joined SGS Microelettronica in 1977. He is a member of the European Round Table of Industrialists. He graduated Electronic Engineering from the University of Pavia.
Average tenure and age of the STMicroelectronics management team in years:
Average tenure and age of the STMicroelectronics board of directors in years:
Check out our latest analysis for STMicroelectronics Peeling the layers of ROE – trisecting a company’s profitability Return on Equity (ROE) weighs STMicroelectronics’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity Returns are usually compared to costs to measure the efficiency of capital. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:STM Last Perf Jan 16th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.Simply Wall St - – Full article
STMicroelectronics is trading at price-to-earnings (PE) ratio of 33.91x, this tells us the stock is overvalued compared to the US market average ratio of 19.74x , and overvalued based on current earnings compared to the semiconductors and semiconductor equipment industry average of 20.32x. … NYSE:STM PE PEG Gauge Jan 5th 18 After looking at STM's value based on current earnings, we can see it seems overvalued relative to other companies in the industry. … However, seeing as STMicroelectronics is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio.Simply Wall St - – Full article
To get a preliminary understanding, I will try to evaluate STMicroelectronics's margin behaviour to assist in analysing the revenue and cost anatomy behind the earnings expectations for the future and the impact it has on shareholder returns relative to the wider industry. … Margin Calculation for STM Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 606.00 Million ÷ 7.74 Billion = 7.83% The past five years have seen STMicroelectronics's margin expand, with revenue decling at -6.56% on average, which was quicker than the average fall in net income of -1.63%, which suggests that earnings has represented a larger percentage of the top line due to the faster fall in revenue. … Using STMicroelectronics's margin expectations as a way to understand projections for the future Margins are expected to shift towards expansion, with an expectation of 8.68% in annual revenue growth and a forecasted 23.16% in annual net income growth.Simply Wall St - – Full article
How does STM’s operating cash flow stack up against its debt? … NYSE:STM Historical Debt Oct 27th 17 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. … STM’s high cash coverage and appropriate debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow.Simply Wall St - – Full article
STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and markets semiconductor products, and subsystems and modules worldwide. The company offers a range of products, including discrete and standard commodity components, application-specific integrated circuits, full-custom devices and semi-custom devices, and application-specific standard products for analog, digital, and mixed-signal applications, as well as silicon chips and smartcards. It also provides subsystems and modules, including mobile phone accessories, battery chargers, and ISDN power supplies for the telecommunications, automotive, and industrial markets; and in-vehicle equipment for electronic toll payment. The company sells its products through its distributors and retailers, as well as through sales representatives. STMicroelectronics N.V. was founded in 1987 and is headquartered in Geneva, Switzerland.
39, Chemin du Champ des Filles,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|ENXTPA||STM||Common Stock||Euronext Paris||FR||EUR||08. Dec 1994|
|OTCPK||STME.F||Common Stock||Pink Sheets LLC||US||USD||08. Dec 1994|
|DB||SGM||Common Stock||Deutsche Boerse AG||DE||EUR||08. Dec 1994|
|LSE||0INB||Common Stock||London Stock Exchange||GB||EUR||08. Dec 1994|
|BIT||STM||Common Stock||Borsa Italiana||IT||EUR||08. Dec 1994|
|WBAG||STMI||Common Stock||Wiener Boerse AG||AT||EUR||08. Dec 1994|
|BATS-CHIXE||STMP||Common Stock||BATS 'Chi-X Europe'||GB||EUR||08. Dec 1994|
|BATS-CHIXE||STMM||Common Stock||BATS 'Chi-X Europe'||GB||EUR||08. Dec 1994|
|NYSE||STM||NY SHS-EACH REPR 1 ORD EUR1.04||New York Stock Exchange||US||USD||08. Dec 1994|
|DB||SGMR||NY SHS-EACH REPR 1 ORD EUR1.04||Deutsche Boerse AG||DE||EUR||08. Dec 1994|
|DUSE||SGMR||NY SHS-EACH REPR 1 ORD EUR1.04||Dusseldorf Stock Exchange||DE||EUR||08. Dec 1994|
|LSE||0L9Y||NY SHS-EACH REPR 1 ORD EUR1.04||London Stock Exchange||GB||USD||08. Dec 1994|
|BMV||STM N||NY SHS-EACH REPR 1 ORD EUR1.04||Bolsa Mexicana de Valores||MX||MXN||08. Dec 1994|
|Company Analysis updated:||2018/02/24|
|Last estimates confirmation:||2018/02/15|
|Last earnings update:||2017/12/31|
|Last annual earnings update:||2017/12/31|
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.