Qorvo (QRVO:NAS) Fundamental Valuation Report

Qorvo (QRVO:NAS) Fundamental Valuation Report

Fundamental Valuation Report



This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$180.62 (USD) 05/25/2021

Weighted Valuation
$177.36 (USD)

Overall Rating
Fairly valued to slightly Overvalued by 1.8%

Valuation Models Comparables: $171.90 (USD)
Multiples: $151.39 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Fairly valued on a Comparable Valuation
Asset: Overvalued on an Asset Valuation
According to Analyst consensus at $208.80 this stock is Undervalued

Company Overview (QRVO:NAS USD)

Price 180.62
Range 179.46 – 182.85
52 week 100.77 – 199.54
Open 180.74
Vol / Avg. 1.02M/1.35M
Mkt cap 20.34B
P/E 28.58
Div/yield 0.00/0.00
EPS 6.32
Shares 112.59M
Beta 1.38

Company Description

Qorvo represents the combined entity of RF Micro Devices and TriQuint Semiconductor, which merged with one another in January 2015. The company specializes in radio frequency filters, power amplifiers, and front-end modules used in many of the world’s most advanced smartphones. Qorvo also has a suite of products sold into a variety of nonsmartphone end markets, such as wireless base stations, cable TV and networking equipment, and infrastructure and military applications.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for QRVO:NAS

Using a discounted cash flow model we generated an intrinsic value of $145.60 (USD) for QRVO:NAS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

QRVO:NAS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $145.60 1% 5% 1% 5%
WACC (or Ke) 9.18 $175.07 $124.34
Terminal Growth Rate 3.00 $126.54 $172.02
Tax Rate 0.09 $154.61 $136.60
Cash Flow 1,541,086,000 $136.26 $154.94
Capital Expenditures -278,907,600 $144.16 $147.05
Long Term Debt 988,625,000 $146.04 $145.16

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $171.90 (USD) for QRVO:NAS. We also generated a valuation of $146.02 (USD) using other metrics and comparables.
The comparable companies were MACOM Technology (MTSI:NAS), Synaptics (SYNA:NAS), ON Semiconductor (ON:NAS), Cree (CREE:NAS) and Diodes (DIOD:NAS).

Company QRVO:NAS End Date Value
Earnings/Share $6.32 (USD)
Book Value/Share $41.12 (USD)
Sales/Share $34.61 (USD)
Cash Flow/Share $11.22 (USD)
EBITDA/Share $11.54 (USD)
Price Based on Comps Adjustment Factor (%)
$233.15 (USD) 0.0
$220.56 (USD) -46.7
$190.93 (USD) -12.9
$197.39 (USD) -30.4
$246.66 (USD) -16.0
28.58 PE Ratio 36.89 0.00 29.85 49.29 0.00 31.53
4.39 PB Ratio 5.36 9.20 4.73 4.58 4.98 3.33
5.22 PS Ratio 5.52 6.44 3.60 3.05 11.72 2.76
16.10 PCF Ratio 18.93 21.97 17.35 17.77 0.00 18.64
15.45 EV to EBITDA 21.38 41.42 13.62 17.65 0.00 12.82


Using a multiples approach we generated a valuation of  $151.39 (USD) for QRVO:NAS

Company QRVO:NAS End Date Value
Earnings/Share $6.32 (USD)
Book Value/Share $41.12 (USD)
Sales/Share $34.61 (USD)
Cash Flow/Share $11.22 (USD)
EBITDA/Share $11.54 (USD)
Price Based on Comps Adjustment Factor
$280.19 (USD) 0
$84.31 (USD) 0
$109.76 (USD) 0
$133.64 (USD) 0
$149.06 (USD) 0
Ratios Ratio Average
PE Ratio 44.33
PB Ratio 2.05
PS Ratio 3.17
PCF Ratio 11.91
EV to EBITDA 12.92

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  QRVO:NAS for the last 6 years was  2.16

We ran the Adjusted Book Value for  QRVO:NAS and generated a book value of  $41.13 (USD)
By multiplying these we get an adjusted valuation of  $88.82 (USD)

Analyst Data

In the Stockcalc database there are 5 analysts that provide a valuation for QRVO:NAS. The 5 analysts have a concensus valuation for QRVO:NAS for 2022 of $208.80 (USD).


Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
2 3 0 3.8333 Outperform 2021-5-24

Current Price: 180.62 USD

Analyst Consensus
USD Millions 2022 2023 2024
Mean EPS 11.18 11.93 13.45
# EPS Analysts 5 5 2
Mean Revenue 4,569.90 4,814.30 5,129.00
# Revenue Analysts 5 5 2
Mean Target Price 208.80
Mean Cash Flow 12.95 13.65 15.35
Mean EBITDA 1,592.60 1,646.80 1,496.20
Mean Net Income 1,283.30 1,359.10 1,456.70
Mean Debt Outstanding 315.40 380.20 489.10
Mean Tax Rate 8.83 8.83 9.50
Mean Growth Rate 10.04
Mean Capital Expenditure 282.90 292.50 522.30

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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