Is STMicroelectronics NV ADR (STM) overvalued?
On Equity Rank's model estimate, STM trades 22% above its fair value. STMicroelectronics NV ADR (STM) last closed at $41.72; the multi-method model fair value is $34.35.
| Price | Model fair value | Price vs model |
|---|---|---|
| $41.72 | $34.35 | 22% above |
What the answer rests on
- 1 of 11 valuation methods put STM's value above its price and 10 put it below, so the methods mostly agree.
- STM trades at 80.0 times its last year's earnings, against a median of 39.1 for 27 profitable Semiconductors companies.
- Over the past year the price sat below the model fair value on 58% of trading days. The gap ranged from 10% below to 16% 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 STM's fair value · What prices assume · Other companies