A Fresh Look at InterDigital's (IDCC) Valuation Following New Licensing Deals in Wireless and EV Charging Tech

InterDigital (IDCC) has just renewed its patent license agreement with Sharp and signed a new licensing deal with an EV charger manufacturer. These developments reflect the company’s growing influence in wireless, video, and now EV charging technologies.

See our latest analysis for InterDigital.

The momentum behind InterDigital is hard to ignore, especially with recent licensing wins amplifying a strong run. Its year-to-date share price return sits at an impressive 93%, while the one-year total shareholder return has soared to nearly 160%. In both the short and long term, InterDigital’s stock has rewarded patient holders handsomely, reflecting growing optimism about its expanding reach into wireless, video, and EV charging technologies.

If InterDigital’s expansion caught your attention, it could be the perfect moment to broaden your horizons and discover See the full list for free.

But after such strong share price gains, the big question is whether InterDigital still has room to run, or if the market has already priced in the company’s future growth prospects and momentum. Could there still be a buying opportunity?

Most Popular Narrative: 15% Overvalued

InterDigital’s last close of $378.62 compares to a narrative fair value of $328.75. This suggests current market enthusiasm could be running well ahead of the projected fundamentals. The valuation relies on aggressive growth expectations and a high future earnings multiple, which calls for a closer examination of the narrative’s underlying logic.

The recent 67% uplift in the Samsung license and an all-time high annualized recurring revenue, driven by multi-year agreements with major OEMs, have set highly optimistic expectations for continued outsized growth in future contract renewals. This could potentially inflate valuation multiples and overstate the sustainable revenue trajectory.

Read the complete narrative.

Curious how a massive revenue boost can shape a lofty price target? The secret link between record contract renewals and future profits may surprise you. Find out which bullish projections are driving this fair value, as one detail could upend your view of InterDigital’s next move.

Result: Fair Value of $328.75 (OVERVALUED)

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

However, strong licensing wins with major manufacturers, along with rapid expansion into consumer electronics, could yet drive more stable revenue growth than some expect.

Find out about the key risks to this InterDigital narrative.

Build Your Own InterDigital Narrative

If you want to dig into the numbers personally or see things from a different angle, building your own view is quick and straightforward. Do it your way

A great starting point for your InterDigital research is our analysis highlighting 2 key rewards and 2 important warning signs 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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