STM PE Ratio & Valuation, Is STM Overvalued

Historical Valuation

STMicroelectronics NV (STM) is now in the Fair zone, suggesting that its current forward PE ratio of 27.26 is considered Fairly compared with the five-year average of 17.40. The fair price of STMicroelectronics NV (STM) is between 19.16 to 33.79 according to relative valuation method.

Relative Value

Fair Zone

19.16-33.79

Current Price：33.52

Fair

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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STMicroelectronics NV (STM) has a current Price-to-Book (P/B) ratio of 1.37. Compared to its 3-year average P/B ratio of 1.98, the current P/B ratio is approximately -30.87% higher. Relative to its 5-year average P/B ratio of 2.75, the current P/B ratio is about -50.06% higher. STMicroelectronics NV (STM) has a Forward Free Cash Flow (FCF) yield of approximately -0.07%. Compared to its 3-year average FCF yield of 2.91%, the current FCF yield is approximately -102.53% lower. Relative to its 5-year average FCF yield of 3.33%, the current FCF yield is about -102.22% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for STM competitors is 7.53, providing a benchmark for relative valuation. STMicroelectronics NV Corp (STM.N) exhibits a P/S ratio of 1.93, which is -74.39% above the industry average. Given its robust revenue growth of 0.24%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of STM increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of STM in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is STM currently overvalued or undervalued?

What is STMicroelectronics NV (STM) fair value?

STM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of STMicroelectronics NV (STM) is between 19.16 to 33.79 according to relative valuation method.

How does STM's valuation metrics compare to the industry average?

The average P/S ratio for STM's competitors is 7.53, providing a benchmark for relative valuation. STMicroelectronics NV Corp (STM) exhibits a P/S ratio of 1.93, which is -74.39% above the industry average. Given its robust revenue growth of 0.24%, this premium appears unsustainable.

What is the current P/B ratio for STMicroelectronics NV (STM) as of Mar 12 2026?

As of Mar 12 2026, STMicroelectronics NV (STM) has a P/B ratio of 1.37. This indicates that the market values STM at 1.37 times its book value.

What is the current FCF Yield for STMicroelectronics NV (STM) as of Mar 12 2026?

As of Mar 12 2026, STMicroelectronics NV (STM) has a FCF Yield of -0.07%. This means that for every dollar of STMicroelectronics NV's market capitalization, the company generates -0.07 cents in free cash flow.

What is the current Forward P/E ratio for STMicroelectronics NV (STM) as of Mar 12 2026?

As of Mar 12 2026, STMicroelectronics NV (STM) has a Forward P/E ratio of 27.26. This means the market is willing to pay $27.26 for every dollar of STMicroelectronics NV's expected earnings over the next 12 months.

What is the current Forward P/S ratio for STMicroelectronics NV (STM) as of Mar 12 2026?

As of Mar 12 2026, STMicroelectronics NV (STM) has a Forward P/S ratio of 1.93. This means the market is valuing STM at $1.93 for every dollar of expected revenue over the next 12 months.

STM Valuation