STM Valuation

STMicroelectronics NV

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25.850

+0.2(0.780%)1D

Overview
Forecast
Valuation
Earnings

STM Relative Valuation

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

Historical Valuation

STMicroelectronics NV (STM) is now in the Overvalued zone, suggesting that its current forward PE ratio of 25.10 is considered Overvalued compared with the five-year average of 17.27. The fair price of STMicroelectronics NV (STM) is between 12.15 to 23.86 according to relative valuation methord. Compared to the current price of 25.85 USD , STMicroelectronics NV is Overvalued By 8.35%.

Relative Value

Fair Zone

12.15-23.86

Current Price：25.85

8.35%

Overvalued

25.10

Trailing

Forward

7.17

EV/EBITDA

STMicroelectronics NV. (STM) has a current EV/EBITDA of 7.17. The 5-year average EV/EBITDA is 8.04. The thresholds are as follows: Strongly Undervalued below 3.70, Undervalued between 3.70 and 5.87, Fairly Valued between 10.21 and 5.87, Overvalued between 10.21 and 12.38, and Strongly Overvalued above 12.38. The current Forward EV/EBITDA of 7.17 falls within the Historic Trend Line -Fairly Valued range.

23.29

EV/EBIT

STMicroelectronics NV. (STM) has a current EV/EBIT of 23.29. The 5-year average EV/EBIT is 14.46. The thresholds are as follows: Strongly Undervalued below 1.94, Undervalued between 1.94 and 8.20, Fairly Valued between 20.72 and 8.20, Overvalued between 20.72 and 26.98, and Strongly Overvalued above 26.98. The current Forward EV/EBIT of 23.29 falls within the Overvalued range.

1.85

STMicroelectronics NV. (STM) has a current PS of 1.85. The 5-year average PS is 2.41. The thresholds are as follows: Strongly Undervalued below 1.54, Undervalued between 1.54 and 1.97, Fairly Valued between 2.85 and 1.97, Overvalued between 2.85 and 3.29, and Strongly Overvalued above 3.29. The current Forward PS of 1.85 falls within the Undervalued range.

7.59

P/OCF

STMicroelectronics NV. (STM) has a current P/OCF of 7.59. The 5-year average P/OCF is 9.33. The thresholds are as follows: Strongly Undervalued below 3.87, Undervalued between 3.87 and 6.60, Fairly Valued between 12.06 and 6.60, Overvalued between 12.06 and 14.79, and Strongly Overvalued above 14.79. The current Forward P/OCF of 7.59 falls within the Historic Trend Line -Fairly Valued range.

24.28

P/FCF

STMicroelectronics NV. (STM) has a current P/FCF of 24.28. The 5-year average P/FCF is 31.51. The thresholds are as follows: Strongly Undervalued below 5.80, Undervalued between 5.80 and 18.66, Fairly Valued between 44.36 and 18.66, Overvalued between 44.36 and 57.22, and Strongly Overvalued above 57.22. The current Forward P/FCF of 24.28 falls within the Historic Trend Line -Fairly Valued range.

STMicroelectronics NV (STM) has a current Price-to-Book (P/B) ratio of 1.30. Compared to its 3-year average P/B ratio of 2.27 , the current P/B ratio is approximately -42.69% higher. Relative to its 5-year average P/B ratio of 3.01, the current P/B ratio is about -56.83% higher. STMicroelectronics NV (STM) has a Forward Free Cash Flow (FCF) yield of approximately -0.36%. Compared to its 3-year average FCF yield of 3.75%, the current FCF yield is approximately -109.60% lower. Relative to its 5-year average FCF yield of 3.52% , the current FCF yield is about -110.23% lower.

1.30

P/B

Median3y

2.27

Median5y

3.01

-0.36

FCF Yield

Median3y

3.75

Median5y

3.52

Competitors Valuation Multiple

The average P/S ratio for STM's competitors is 2.42, providing a benchmark for relative valuation. STMicroelectronics NV Corp (STM) exhibits a P/S ratio of 1.85, which is -23.59% above the industry average. Given its robust revenue growth of -14.42%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

STM.N

STMicroelectronics NV

ON Semiconductor Corp

ChipMOS Technologies Inc

Performance Decomposition

Market capitalization of STM decreased by 19.46% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 16.15 to 36.51.

The secondary factor is the Revenue Growth, contributed -14.42%to the performance.

Overall, the performance of STM in the past 1 year is driven by P/E Change. Which is more unsustainable.

-14.42%

3.23B → 2.77B

Revenue Growth

-131.05%

10.95 → -3.40

Margin Expansion

126.01%

16.15 → 36.51

P/E Change

-19.46%