Is STMEF undervalued?

AlphaMadera's AlphaVal page computes STMicroelectronics N.V.'s fair value using a multi-method blend (DCF, comparable-multiples, and Graham-style intrinsic value), then compares it to the current market price to flag STMEF as undervalued, fairly valued, or overvalued.

What is STMicroelectronics N.V.'s fair value?

Fair value for STMEF is a model output combining discounted cash flow projections, peer-group multiples, and a Graham number floor. The live AlphaVal page shows the blended fair value alongside each method's individual estimate.

How does AlphaMadera value STMEF?

AlphaVal uses three primary techniques: a five-year discounted-cash-flow projection with terminal multiple, peer-group multiple analysis (P/E, EV/EBITDA, P/S), and Graham's defensive-investor intrinsic-value formula. Inputs come from STMEF's most recent reported fundamentals.

STMEF - STMicroelectronics N.V.

Price: -- -- | CONSENSUS: Buy DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Cyclical & Capital-Intensive 80% confidence

Primary model: Normalized Earnings × Cycle Multiple

Valuation Signal Overvalued Strong

Trading 51.6% above fair value

Current Price $51.92

Bear Case $26.40 49.2% downside ($26.40 - $51.92) / $51.92 = -49.2% $1.96 × 12x + net cash

Fair Value $34.24 34.1% downside ($34.24 - $51.92) / $51.92 = -34.1% $1.96 × 16x + net cash

Bull Case $42.08 19.0% downside ($42.08 - $51.92) / $51.92 = -19.0% $1.96 × 20x + net cash

Adjust Assumptions

Cycle P/E Multiple

16.0x

Normalized EPS

1.96$

Key Value Driver

Through-cycle normalized EPS ($1.96)

Implied Market Multiple 26.5x

Plain-Language Summary

Using 7-year normalized EPS of $1.96 at a 16x cycle multiple, the base-case value is $34.24 per share. P/TBV cross-check: 2.7x.

Warnings

⚠ Price-to-book value of 2.7x is above the normal range for this type of business (0.7x-2.0x). The stock may already price in a strong cycle.

ℹ This company has heavy ongoing investment costs. Valuation shortcuts that ignore those costs can make the stock look cheaper than it really is.

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