Could Infineon Technologies AG (ETR:IFX) Present a 35% Undervaluation Opportunity?

Written by Emily J. Thompson, Senior Investment Analyst

Source: Yahoo Finance

Updated: Dec 19 2025

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Source: Yahoo Finance

Valuation Overview: Infineon Technologies is estimated to have a fair value of €54.59, indicating it is currently undervalued by 35% with a share price of €35.49.
Discounted Cash Flow Analysis: A two-stage DCF model suggests a total equity value of €71 billion for Infineon, with a terminal value calculated at €102 billion, discounted to present value.
Financial Strengths and Weaknesses: The company has manageable debt levels and dividends covered by earnings, but has experienced a decline in earnings over the past year and offers a low dividend compared to top competitors.
Market Position and Risks: Infineon is trading below its intrinsic value, with forecasted earnings growth expected to outpace the German market, though revenue growth is projected to be slower than 20% annually, highlighting potential risks.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.