IDCC
InterDigital, Inc.
$260.98
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 49.6% below fair value
You pay
$260.98
Bear
$344.15
Fair
$517.69
Bull
$709.78
Bear
$344.15
+31.9%
9% stage 1 growth, 12% discount
Fair
$517.69
+98.4%
15% stage 1 growth, 12% discount
Bull
$709.78
+172.0%
19% stage 1 growth, 12% discount
Key Value Driver
FCF growth rate (15% base case)
Terminal Value % of EV
38%
Implied Market Multiple
12.1x
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $425.00 from 16 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $517.69 per share.
Warnings
Wall Street's average price target is $425.00 (from 16 analysts). Our estimate is 29% above the consensus -- consider that gap carefully.
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