InterDigital, Inc.

NasdaqGS:IDCC Stock Report

Market Cap: US$4.8b

InterDigital Valuation

Is IDCC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of IDCC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IDCC ($189.43) is trading below our estimate of fair value ($281.43)

Significantly Below Fair Value: IDCC is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IDCC?

Key metric: As IDCC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for IDCC. This is calculated by dividing IDCC's market cap by their current earnings.
What is IDCC's PE Ratio?
PE Ratio18.1x
EarningsUS$264.59m
Market CapUS$4.80b

Price to Earnings Ratio vs Peers

How does IDCC's PE Ratio compare to its peers?

The above table shows the PE ratio for IDCC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average50.2x
AGYS Agilysys
40.2x-71.3%US$3.8b
BL BlackLine
31.3x-26.2%US$4.0b
BOX Box
39.1x14.2%US$4.6b
SPSC SPS Commerce
90.1x12.0%US$7.1b
IDCC InterDigital
18.1x-25.3%US$4.8b

Price-To-Earnings vs Peers: IDCC is good value based on its Price-To-Earnings Ratio (18.1x) compared to the peer average (50.2x).

Price to Earnings Ratio vs Industry

How does IDCC's PE Ratio compare vs other companies in the US Software Industry?

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
YXT YXT.COM Group Holding
2.1xn/aUS$138.77m
NISN Nisun International Enterprise Development Group
1.4xn/aUS$23.92m
NXTT Next Technology Holding
0.5xn/aUS$13.26m
ULY Urgent.ly
0.07x-13.0%US$6.79m
IDCC 18.1xIndustry Avg. 40.8xNo. of Companies12PE020406080100+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IDCC is good value based on its Price-To-Earnings Ratio (18.1x) compared to the US Software industry average (40.8x).

Price to Earnings Ratio vs Fair Ratio

What is IDCC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IDCC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.1x
Fair PE Ratio22.3x

Price-To-Earnings vs Fair Ratio: IDCC is good value based on its Price-To-Earnings Ratio (18.1x) compared to the estimated Fair Price-To-Earnings Ratio (22.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst IDCC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$189.43
US$176.50
-6.8%
27.8%US$235.00US$100.00n/a4
Dec ’25US$195.96
US$153.00
-21.9%
21.8%US$186.00US$100.00n/a4
Nov ’25US$165.70
US$153.00
-7.7%
21.8%US$186.00US$100.00n/a4
Oct ’25US$142.66
US$136.50
-4.3%
17.6%US$160.00US$100.00n/a4
Sep ’25US$138.56
US$132.25
-4.6%
15.4%US$153.00US$100.00n/a4
Aug ’25US$136.87
US$129.50
-5.4%
13.9%US$146.00US$100.00n/a4
Jul ’25US$116.28
US$115.75
-0.5%
13.6%US$132.00US$100.00n/a4
Jun ’25US$113.87
US$115.75
+1.7%
13.6%US$132.00US$100.00n/a4
May ’25US$97.90
US$119.20
+21.8%
11.3%US$132.00US$100.00n/a5
Apr ’25US$97.35
US$119.20
+22.4%
11.3%US$132.00US$100.00n/a5
Mar ’25US$107.30
US$127.25
+18.6%
10.0%US$140.00US$106.00n/a4
Feb ’25US$104.75
US$117.25
+11.9%
5.9%US$125.00US$106.00n/a4
Jan ’25US$108.54
US$117.25
+8.0%
5.9%US$125.00US$106.00n/a4
Dec ’24US$100.99
US$112.25
+11.1%
6.0%US$119.00US$105.00US$195.964
Nov ’24US$76.32
US$110.50
+44.8%
5.1%US$119.00US$105.00US$165.704
Oct ’24US$80.24
US$110.50
+37.7%
5.1%US$119.00US$105.00US$142.664
Sep ’24US$85.94
US$110.50
+28.6%
5.1%US$119.00US$105.00US$138.564
Aug ’24US$92.40
US$109.25
+18.2%
3.5%US$114.00US$105.00US$136.874
Jul ’24US$96.55
US$109.25
+13.2%
3.5%US$114.00US$105.00US$116.284
Jun ’24US$83.49
US$105.25
+26.1%
8.9%US$114.00US$90.00US$113.874
May ’24US$67.60
US$89.00
+31.7%
24.7%US$112.00US$55.00US$97.904
Apr ’24US$72.90
US$89.00
+22.1%
24.7%US$112.00US$55.00US$97.354
Mar ’24US$73.17
US$88.00
+20.3%
24.2%US$112.00US$55.00US$107.304
Feb ’24US$71.06
US$85.50
+20.3%
27.4%US$112.00US$50.00US$104.754
Jan ’24US$49.48
US$83.50
+68.8%
25.6%US$104.00US$50.00US$108.544
Dec ’23US$50.75
US$84.67
+66.8%
29.0%US$104.00US$50.00US$100.993

Analyst Forecast: Target price is lower than the current share price.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 02:40
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

InterDigital, Inc. is covered by 21 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Brett SimpsonArete Research Services LLP
Ishan MajumdarBaptista Research
Amir RozwadowskiBarclays