AlphaMadera's AlphaVal page classifies NVE Corporation as a Cyclical & Capital-Intensive business and values it using Normalized Earnings × Cycle Multiple, then compares the result to the current market price to flag NVEC as undervalued, fairly valued, or overvalued.

What is NVE Corporation's fair value?

Fair value for NVEC comes from a Normalized Earnings × Cycle Multiple model -- the approach AlphaVal selected for this company's Cyclical & Capital-Intensive classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value NVEC?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. NVEC was classified as Cyclical & Capital-Intensive and is valued using Normalized Earnings × Cycle Multiple, built from NVEC's most recent reported fundamentals.

NVEC - NVE Corporation

Price: -- --

AlphaVal

Deterministic, archetype-aware fair value

Cyclical & Capital-Intensive 70% confidence

Primary model: Normalized Earnings × Cycle Multiple

Valuation Signal Overvalued Strong

Trading 96.2% above fair value

Current Price $99.13

Bear Case $37.90 61.8% downside ($37.90 - $99.13) / $99.13 = -61.8% $3.16 × 12x

Fair Value $50.53 49.0% downside ($50.53 - $99.13) / $99.13 = -49.0% $3.16 × 16x

Bull Case $63.16 36.3% downside ($63.16 - $99.13) / $99.13 = -36.3% $3.16 × 20x

Adjust Assumptions

Cycle P/E Multiple

16.0x

Normalized EPS

3.16$

Key Value Driver

Through-cycle normalized EPS ($3.16)

Terminal Value % of EV

Implied Market Multiple 31.4x

Market is pricing in (growth)

Plain-Language Summary

Using 7-year normalized EPS of $3.16 at a 16x cycle multiple, the base-case value is $50.53 per share. P/TBV cross-check: 8.2x.

Warnings

⚠ Price-to-book value of 8.2x is above the normal range for this type of business (0.7x-2.0x). The stock may already price in a strong cycle.

Key Risks

Standard 10-year DCF produces unreliable terminal values for cyclicals
'Cheap' P/E at cycle peak is the most common value trap — normalize first
Captive finance subsidiaries have different risk profiles from manufacturing