Is NXP Semiconductors NV (NXPI) overvalued?
On Equity Rank's model estimate, NXPI trades close to its fair value (5% below it). NXP Semiconductors NV (NXPI) last closed at $248.29; the multi-method model fair value is $260.91.
| Price | Model fair value | Price vs model |
|---|---|---|
| $248.29 | $260.91 | 5% below |
What the answer rests on
- 4 of 11 valuation methods put NXPI's value above its price and 7 put it below, so the methods disagree.
- To justify today's price, NXPI's free cash flow would need to grow about 15.6% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew -5.1% a year.
- Over the past year the price sat below the model fair value on 50% of trading days. The gap ranged from 14% below to 39% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind NXPI's fair value · What prices assume · Other companies