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STMicroelectronics NV
PAR:STMPA

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STMicroelectronics NV
PAR:STMPA
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Price: 46.015 EUR 2.9% Market Closed
Market Cap: €41.9B

EV/IC

2.3
Current
69%
More Expensive
vs 3-y average of 1.3

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
2.3
=
Enterprise Value
€34.4B
/
Invested Capital
$19.5B

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
2.3
=
Enterprise Value
€34.4B
/
Invested Capital
$19.5B

Valuation Scenarios

STMicroelectronics NV is trading above its 3-year average

If EV/IC returns to its 3-Year Average (1.3), the stock would be worth €27.29 (41% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-49%
Maximum Upside
+409%
Average Upside
80%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 2.3 €46.02
0%
3-Year Average 1.3 €27.29
-41%
5-Year Average 2.2 €45.52
-1%
Industry Average 11.5 €234.24
+409%
Country Average 1.2 €23.43
-49%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
Market Cap EV/IC P/E
NL
STMicroelectronics NV
PAR:STMPA
40.9B EUR 2.3 160.1
US
NVIDIA Corp
NASDAQ:NVDA
4.8T USD 35.5 40.2
US
Broadcom Inc
NASDAQ:AVGO
2T USD 13.3 79.9
TW
Taiwan Semiconductor Manufacturing Co Ltd
TWSE:2330
55.4T TWD 10.2 29.3
US
Micron Technology Inc
NASDAQ:MU
611.6B USD 7.3 25.4
US
Advanced Micro Devices Inc
NASDAQ:AMD
587.7B USD 9.1 135.6
KR
SK Hynix Inc
KRX:000660
701.7T KRW 5 16.1
US
Intel Corp
NASDAQ:INTC
500.4B USD 3.1 -157.7
US
Texas Instruments Inc
NASDAQ:TXN
254.9B USD 9.1 47.8
UK
Arm Holdings PLC
NASDAQ:ARM
224.3B USD 33.8 280
US
Analog Devices Inc
NASDAQ:ADI
194.2B USD 4.6 71.7

Market Distribution

Higher than 77% of companies in Netherlands
Percentile
77th
Based on 560 companies
77th percentile
2.3
Low
0 — 0.8
Typical Range
0.8 — 1.9
High
1.9 —
Distribution Statistics
Netherlands
Min 0
30th Percentile 0.8
Median 1.2
70th Percentile 1.9
Max 36 345.7

STMicroelectronics NV
Glance View

In the heart of the semiconductor industry, STMicroelectronics NV stands out as a formidable player, weaving an intricate tapestry of innovation and technology. Founded through the merger of Italian and French companies, STMicroelectronics has built a legacy of blending European engineering prowess with global reach. The company operates across various segments, with its hands steeped in the design, manufacturing, and marketing of semiconductor solutions. Its portfolio ranges from discrete devices to advanced system-on-chip products tailored for sectors like automotive, industrial, and personal electronics. This expansive range allows STMicroelectronics to create value by addressing the growing demand for connectivity and energy efficiency, making it an essential cog in industries transitioning towards smart and sustainable solutions. STMicroelectronics thrives by embedding itself deeply into the supply chains of numerous technology applications. It capitalizes on the synergy between its R&D investments and customer needs, innovating solutions that drive technological advancement and efficiency. The firm manufactures its semiconductors in an array of global facilities, allowing it to maintain rigorous quality standards and agility in adaptation to market needs. With a strategic focus on product differentiation through tailor-made solutions, STMicroelectronics works directly with major companies like Apple, Bosch, and Tesla, enabling them to embed cutting-edge technology into their products. This symbiotic relationship propels their revenue, as they earn not just from volume sales but from being a key partner in the creation of technology that shapes the modern world.

STMPA Intrinsic Value
34.047 EUR
Overvaluation 26%
Intrinsic Value
Price €46.015
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