GFS Valuation

GlobalFoundries Inc

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34.490

+1.89(5.798%)1D

Overview
Forecast
Valuation
Earnings

GFS Relative Valuation

GFS'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. If the market price exceeds this fair value range, GFS is overvalued; if below, it's undervalued.

Historical Valuation

GlobalFoundries Inc (GFS) is now in the Fair zone, suggesting that its current forward PE ratio of 19.52 is considered Fairly compared with the five-year average of 28.01. The fair price of GlobalFoundries Inc (GFS) is between 28.96 to 57.87 according to relative valuation methord.

Relative Value

Fair Zone

28.96-57.87

Current Price：32.60

Fair

20.32

Trailing

Forward

6.67

EV/EBITDA

GlobalFoundries Inc. (GFS) has a current EV/EBITDA of 6.67. The 5-year average EV/EBITDA is 10.16. The thresholds are as follows: Strongly Undervalued below 6.27, Undervalued between 6.27 and 8.22, Fairly Valued between 12.11 and 8.22, Overvalued between 12.11 and 14.05, and Strongly Overvalued above 14.05. The current Forward EV/EBITDA of 6.67 falls within the Undervalued range.

14.59

EV/EBIT

GlobalFoundries Inc. (GFS) has a current EV/EBIT of 14.59. The 5-year average EV/EBIT is 25.10. The thresholds are as follows: Strongly Undervalued below 8.88, Undervalued between 8.88 and 16.99, Fairly Valued between 33.21 and 16.99, Overvalued between 33.21 and 41.32, and Strongly Overvalued above 41.32. The current Forward EV/EBIT of 14.59 falls within the Undervalued range.

2.63

GlobalFoundries Inc. (GFS) has a current PS of 2.63. The 5-year average PS is 3.85. The thresholds are as follows: Strongly Undervalued below 2.59, Undervalued between 2.59 and 3.22, Fairly Valued between 4.48 and 3.22, Overvalued between 4.48 and 5.11, and Strongly Overvalued above 5.11. The current Forward PS of 2.63 falls within the Undervalued range.

8.57

P/OCF

GlobalFoundries Inc. (GFS) has a current P/OCF of 8.57. The 5-year average P/OCF is 11.45. The thresholds are as follows: Strongly Undervalued below 6.56, Undervalued between 6.56 and 9.00, Fairly Valued between 13.89 and 9.00, Overvalued between 13.89 and 16.33, and Strongly Overvalued above 16.33. The current Forward P/OCF of 8.57 falls within the Undervalued range.

13.50

P/FCF

GlobalFoundries Inc. (GFS) has a current P/FCF of 13.50. The 5-year average P/FCF is 89.26. The thresholds are as follows: Strongly Undervalued below -234.74, Undervalued between -234.74 and -72.74, Fairly Valued between 251.26 and -72.74, Overvalued between 251.26 and 413.26, and Strongly Overvalued above 413.26. The current Forward P/FCF of 13.50 falls within the Historic Trend Line -Fairly Valued range.

GlobalFoundries Inc (GFS) has a current Price-to-Book (P/B) ratio of 1.61. Compared to its 3-year average P/B ratio of 2.69 , the current P/B ratio is approximately -40.22% higher. Relative to its 5-year average P/B ratio of 2.93, the current P/B ratio is about -45.24% higher. GlobalFoundries Inc (GFS) has a Forward Free Cash Flow (FCF) yield of approximately 5.27%. Compared to its 3-year average FCF yield of 1.82%, the current FCF yield is approximately 189.77% lower. Relative to its 5-year average FCF yield of 2.26% , the current FCF yield is about 133.32% lower.

1.67

P/B

Median3y

2.69

Median5y

2.93

5.37

FCF Yield

Median3y

1.82

Median5y

2.26

Competitors Valuation Multiple

The average P/S ratio for GFS's competitors is 2.28, providing a benchmark for relative valuation. GlobalFoundries Inc Corp (GFS) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 3.43%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

ChipMOS Technologies Inc

STMicroelectronics NV

ON Semiconductor Corp

Performance Decomposition

Market capitalization of GFS decreased by 26.11% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 9.50 to 13.51.

The secondary factor is the Revenue Growth, contributed 3.43%to the performance.

Overall, the performance of GFS in the past 1 year is driven by Margin Expansion. Which is more sustainable.

3.43%

1.63B → 1.69B

Revenue Growth

42.21%

9.50 → 13.51

Margin Expansion

-71.75%

-584.79 → -165.20

P/E Change

-26.11%