* Note: Prices are in Million (M) USD.
Description:
GLOBALFOUNDRIES Inc. is a global semiconductor foundry. The company is headquartered in Malta, New York.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,790 M
Debt : $1,684 M
EBITDA : $1,462 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Semiconductors
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 18.05
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 7 overlapping fiscal years (max 20).Average Free Cash Flow: $163 M
Average Revenue: $6,528 M
Revenue Converted To Free Cash Flow (%): 2.5%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $6,750 M
Revenue 4 Years Ago (2020-12-31): $4,851 M
Last 5 Years Average Revenue Growth: 8%
Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $553 M
Share Count 5 Years Ago (2020-12-31): $532 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.95
Trailing 12-Month Earnings Per Share (EPS): $1.75
Average Earnings Per Share (EPS): $1.85
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 6 valid ROE years (max 20).Average ROE: -2.6%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $33
52-Week Low: $30
Threshold Price (15% Above 52-Week Low): $34
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $18,353 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 23 points to above Globalfoundries Inc (GFS) stock.
Last 3 Years Avg PE 23.96, Fair Value PE 25, Industry Based PE 25, Growth Based PE 7, RCFC Based PE 12, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 17.15. Value-Trades has assined P/E value 17.15. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.85.
The fair value of Globalfoundries Inc (GFS) stock should be (17.15 x $1.85) = $31.73.
