As of May 28, 2025, Dialog Semiconductor PLC's estimated intrinsic value ranges from $28.39 to $61.50 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $48.74 | -27.7% |
| Discounted Cash Flow (5Y) | $39.43 | -41.5% |
| Dividend Discount Model (Multi-Stage) | $35.68 | -47.1% |
| Dividend Discount Model (Stable) | $28.39 | -57.9% |
| Earnings Power Value | $61.50 | -8.8% |
Is Dialog Semiconductor PLC (DLG.DE) undervalued or overvalued?
With the current market price at $67.42, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Dialog Semiconductor PLC's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 1.5% | 2.0% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 1.17 | 1.22 |
| Cost of equity | 6.5% | 8.9% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 19.6% | 24.1% |
| Debt/Equity ratio | 0.01 | 0.01 |
| After-tax WACC | 6.4% | 8.8% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $39 | $2,810M | 82.7% |
| 10-Year Growth | $49 | $3,474M | 68.7% |
| 5-Year EBITDA | $21 | $1,490M | 67.4% |
| 10-Year EBITDA | $29 | $2,095M | 48.0% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $326M |
| Discount Rate (WACC) | 8.8% - 6.4% |
| Enterprise Value | $3,690M - $5,077M |
| Net Debt | $0M |
| Equity Value | $3,689M - $5,077M |
| Outstanding Shares | 71M |
| Fair Value | $52 - $71 |
| Selected Fair Value | $61.50 |
| Metric | Value |
|---|---|
| Market Capitalization | $4805M |
| Enterprise Value | $4805M |
| Trailing P/E | 55.65 |
| Forward P/E | 45.37 |
| Trailing EV/EBITDA | 5.25 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.01 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $14.62 |
| Discounted Cash Flow (5Y) | 25% | $9.86 |
| Dividend Discount Model (Multi-Stage) | 20% | $7.14 |
| Dividend Discount Model (Stable) | 15% | $4.26 |
| Earnings Power Value | 10% | $6.15 |
| Weighted Average | 100% | $42.02 |
Based on our comprehensive valuation analysis, Dialog Semiconductor PLC's weighted average intrinsic value is $42.02, which is approximately 37.7% below the current market price of $67.42.
Key investment considerations:
Given these factors, we believe Dialog Semiconductor PLC is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.