* Note: Prices are in Million (M) USD.
Description:
Universal Display Corporation is dedicated to the research, development and commercialization of organic light-emitting diode (OLED) technologies and materials for use in solid-state lighting and display applications. The company is headquartered in Ewing, New Jersey.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $96 M
Debt : $18 M
EBITDA : $305 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Semiconductor equipment & materials
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: 27.01
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $52 M
Average Revenue: $239 M
Revenue Converted To Free Cash Flow (%): 22.0%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $648 M
Revenue 4 Years Ago (2020-12-31): $429 M
Last 5 Years Average Revenue Growth: 10%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $48 M
Share Count 5 Years Ago (2020-12-31): $47 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): $5.14
Trailing 12-Month Earnings Per Share (EPS): $5.12
Average Earnings Per Share (EPS): $5.13
Dividend Per Share (DPS): $2
Payout Ratio: 33%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: -0.4%
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: $139
52-Week Low: $103
Threshold Price (15% Above 52-Week Low): $119
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $6,725 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 21 points to above Universal Display (OLED) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Last 6 Years Avg PE
37.30 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 6 Years Avg P/E (37.30)
× EPS ($5.13) = $191.39.
Last 6 Years Avg PE 37.3, Fair Value PE 25, Industry Based PE 17, Growth Based PE 10, RCFC Based PE 29.58, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 20.85. Value-Trades has assined P/E value 20.85. Since an average (Current Year EPS + Next Year EPS) earning per share is $5.1311.
The fair value of Universal Display (OLED) stock should be (20.85 x $5.1311) = $106.99.
