* Note: Prices are in Million (M) USD.
Description:
Wolfspeed, Inc. is a prominent semiconductor company specializing in advanced silicon carbide (SiC) and gallium nitride (GaN) technologies, critical for high-performance applications such as electric vehicles, 5G communications, and renewable energy systems. The company's proprietary wide bandgap semiconductor materials significantly enhance energy efficiency and power conversion, positioning Wolfspeed as a leader in the rapidly growing sustainable energy market. With a robust focus on innovation and a scalable operational model, Wolfspeed is well-prepared to meet the surging demand for next-generation semiconductor solutions, presenting a compelling investment opportunity for institutional players looking to engage in transformative industry growth.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $695 M
Debt : $1,721 M
EBITDA : $-1,199 M
Net Debt (Debt - Cash): $1,026 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Manufacturing
Industry: Semiconductor and related device manufacturing
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points 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: $-337 M
Average Revenue: $929 M
Revenue Converted To Free Cash Flow (%): -36.3%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-06-30): $758 M
Revenue 5 Years Ago (2020-06-30): $471 M
Total Growth over 5 Years: 61.0%
5-Year Revenue CAGR (Historical): 10.0%
Forward 5-Year CAGR (Tapered): 8.0%
Since historical Revenue CAGR is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-06-30): $47 M
Share Count 5 Years Ago (2021-06-30): $38 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): $-8.46
Trailing 12-Month Earnings Per Share (EPS): $-5.64
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-8.46
- Latest/TTM EPS: $-5.64
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 19 valid ROE years (max 20).Average ROE: -8.1%
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: $36
52-Week Low: $8.05
Threshold Price (15% Above 52-Week Low): $9.26
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: $2,051 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.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share, latest positive annual) (2019-06-30): $1.27
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 8 points to above Wolfspeed, Inc. (WOLF) stock.
Fair Value PE 9, Industry Based PE 20, Growth Based PE 15, Risk-Free Anchored PE (25% MoS) 16.78. Based on these 4 values, average assigned is 15.19. The fair value of Wolfspeed, Inc. (WOLF) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
