IDCC
InterDigital, Inc.
$332.88
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Fair Value
Trading 18.5% below fair value
You pay
$332.88
Bear
$316.27
Fair
$408.30
Bull
$497.53
Bear
$316.27
-5.0%
6% stage 1 growth, 12% discount
Fair
$408.30
+22.7%
10% stage 1 growth, 12% discount
Bull
$497.53
+49.5%
13% stage 1 growth, 12% discount
Adjust Assumptions
9.7%
12.0%
3.0%
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
34%
Implied Market Multiple
14.8x
Market is pricing in (growth)
6.6%
vs 9.7% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (16 analysts)
$450.00
Divergence from AlphaVal
9%
Summary
Using a two-stage FCF DCF with 10% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $408.30 per share.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions