Adeia (ADEA): Valuation in Focus Following New Long-Term Licensing Deal With Altice USA

Adeia has announced a new long-term intellectual property license agreement with Altice USA, covering Optimum’s internet, television, and streaming platforms. The deal also settles all legal disputes between the two companies.

See our latest analysis for Adeia.

Adeia’s recent agreement with Altice USA signals growing confidence around its technology pipeline and business outlook. This comes as the company continues to post steady growth. The share price is currently at $17.29, with some momentum building after a modest 1-year total shareholder return of 0.48%. Longer-term returns highlight gradual improvement. Investors seem to be weighing both Adeia’s partnership wins and its continued undervaluation versus its potential, so it will be worth watching how this develops in the months ahead.

If you’re following developments in licensing or tech-enabled business models, this might be the perfect moment to discover fast growing stocks with high insider ownership.

But with shares trading well below some valuation models and the recent licensing deal adding momentum, does Adeia’s current price offer investors a real bargain, or is the market already accounting for all future growth?

Most Popular Narrative: 16% Undervalued

With Adeia’s last close of $17.29 sitting below the widely tracked fair value estimate of $20.67, there is a growing divide between what the market is pricing in and the level consensus analysts believe is justified by core business drivers.

Adeia is capitalizing on the ongoing proliferation of connected devices and the exponential surge in data generation, which is increasing the need for advanced digital content delivery, storage, and high-performance semiconductor technologies. These trends underpin expanding royalty streams, support sustainable top-line revenue growth, and reinforce long-term earnings stability.

Read the complete narrative.

Want to know the driving forces behind this target? The core of this popular narrative includes bold revenue projections, margin expansion, and a future profit multiple that hints at major industry shifts. The real numbers might surprise you. Curious what is fueling this optimism? Dive in to uncover the financial blueprint behind the fair value call.

Result: Fair Value of $20.67 (UNDERVALUED)

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

However, regulatory changes or rapid shifts in semiconductor technology could still challenge Adeia’s growth story and significantly impact future returns.

Find out about the key risks to this Adeia narrative.

Build Your Own Adeia Narrative

If you want to dig deeper or think you see the story differently, it’s easy to craft a personalized view based on the same numbers. Do it your way

A great starting point for your Adeia research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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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