STM PE Ratio & Valuation,Is STM Overvalued

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 27.26 is considered Overvalued compared with the five-year average of 17.47. The fair price of STMicroelectronics NV (STM) is between 15.85 to 27.90 according to relative valuation methord. Compared to the current price of 28.05 USD , STMicroelectronics NV is Overvalued By 0.55%.

Relative Value

Fair Zone

15.85-27.90

Current Price：28.05

0.55%

Overvalued

27.26

7.79

EV/EBITDA

STMicroelectronics NV. (STM) has a current EV/EBITDA of 7.79. The 5-year average EV/EBITDA is 7.68. The thresholds are as follows: Strongly Undervalued below 4.01, Undervalued between 4.01 and 5.84, Fairly Valued between 9.52 and 5.84, Overvalued between 9.52 and 11.36, and Strongly Overvalued above 11.36. The current Forward EV/EBITDA of 7.79 falls within the Historic Trend Line -Fairly Valued range.

23.44

EV/EBIT

STMicroelectronics NV. (STM) has a current EV/EBIT of 23.44. The 5-year average EV/EBIT is 14.64. The thresholds are as follows: Strongly Undervalued below 1.70, Undervalued between 1.70 and 8.17, Fairly Valued between 21.12 and 8.17, Overvalued between 21.12 and 27.59, and Strongly Overvalued above 27.59. The current Forward EV/EBIT of 23.44 falls within the Overvalued range.

1.93

STMicroelectronics NV. (STM) has a current PS of 1.93. The 5-year average PS is 2.34. The thresholds are as follows: Strongly Undervalued below 1.45, Undervalued between 1.45 and 1.89, Fairly Valued between 2.79 and 1.89, Overvalued between 2.79 and 3.23, and Strongly Overvalued above 3.23. The current Forward PS of 1.93 falls within the Historic Trend Line -Fairly Valued range.

8.69

P/OCF

STMicroelectronics NV. (STM) has a current P/OCF of 8.69. The 5-year average P/OCF is 8.88. The thresholds are as follows: Strongly Undervalued below 4.16, Undervalued between 4.16 and 6.52, Fairly Valued between 11.25 and 6.52, Overvalued between 11.25 and 13.61, and Strongly Overvalued above 13.61. The current Forward P/OCF of 8.69 falls within the Historic Trend Line -Fairly Valued range.

22.91

P/FCF

STMicroelectronics NV. (STM) has a current P/FCF of 22.91. The 5-year average P/FCF is 29.84. The thresholds are as follows: Strongly Undervalued below 5.48, Undervalued between 5.48 and 17.66, Fairly Valued between 42.02 and 17.66, Overvalued between 42.02 and 54.20, and Strongly Overvalued above 54.20. The current Forward P/FCF of 22.91 falls within the Historic Trend Line -Fairly Valued range.

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 2.05 , the current P/B ratio is approximately -33.13% higher. Relative to its 5-year average P/B ratio of 2.80, the current P/B ratio is about -50.99% 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 3.03%, the current FCF yield is approximately -102.43% lower. Relative to its 5-year average FCF yield of 3.29% , the current FCF yield is about -102.24% lower.

1.37

P/B

Median3y

2.05

Median5y

2.80

-0.07

FCF Yield

Median3y

3.03

Median5y

3.29

Competitors Valuation Multiple

The average P/S ratio for STM's competitors is 5.28, providing a benchmark for relative valuation. STMicroelectronics NV Corp (STM) exhibits a P/S ratio of 1.93, which is -63.45% above the industry average. Given its robust revenue growth of -1.97%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of STM increased by 28.64% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 29.01 to 47.30.

The secondary factor is the Revenue Growth, contributed -1.97%to the performance.

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

-1.97%

3.25B → 3.19B

Revenue Growth

-32.43%

11.10 → 7.50

Margin Expansion

63.04%

29.01 → 47.30

P/E Change

28.64%

22.45 → 28.88

Mkt Cap Growth

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Frequently Asked Questions

Is STMicroelectronics NV (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 15.85 to 27.90 according to relative valuation methord.

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

What is the current P/B ratio for STMicroelectronics NV (STM) as of Jan 08 2026?

As of Jan 08 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 Jan 08 2026?

As of Jan 08 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 Jan 08 2026?

As of Jan 08 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 Jan 08 2026?

As of Jan 08 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