As of April 4, 2026, Silicon Laboratories Inc has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $209.13, this represents a potential upside of -112.8%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -121.2% |
| Potential Upside (10-year) | -112.8% |
| Discount Rate (WACC) | 7.9% - 9.8% |
Revenue is projected to grow from $785 million in 01-2026 to $5147 million by 01-2036, representing a compound annual growth rate of approximately 20.7%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 01-2026 | 785 | 34% |
| 01-2027 | 1130 | 44% |
| 01-2028 | 1280 | 13% |
| 01-2029 | 1655 | 29% |
| 01-2030 | 2015 | 22% |
| 01-2031 | 2501 | 24% |
| 01-2032 | 2943 | 18% |
| 01-2033 | 3472 | 18% |
| 01-2034 | 3949 | 14% |
| 01-2035 | 4518 | 14% |
| 01-2036 | 5147 | 14% |
Net profit margin is expected to improve from -8% in 01-2026 to 3% by 01-2036, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 01-2026 | (65) | -8% |
| 01-2027 | (46) | -4% |
| 01-2028 | (32) | -3% |
| 01-2029 | (18) | -1% |
| 01-2030 | 6 | 0% |
| 01-2031 | 40 | 2% |
| 01-2032 | 54 | 2% |
| 01-2033 | 72 | 2% |
| 01-2034 | 92 | 2% |
| 01-2035 | 116 | 3% |
| 01-2036 | 144 | 3% |
with a 5-year average of $24 million. Projected CapEx is expected to maintain at approximately 3% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 01-2027 | 25 |
| 01-2028 | 27 |
| 01-2029 | 33 |
| 01-2030 | 43 |
| 01-2031 | 52 |
| 01-2032 | 63 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 26 |
| Days Inventory | 156 |
| Days Payables | 60 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2027 | (53) | (14) | 34 | 90 | (163) |
| 2028 | (35) | (10) | 39 | 8 | (73) |
| 2029 | (17) | (6) | 50 | 44 | (106) |
| 2030 | 18 | 2 | 61 | 60 | (105) |
| 2031 | 64 | 12 | 76 | 60 | (85) |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -121.2% |
| 10-Year DCF (Growth) | 0.00 | -112.8% |
| 5-Year DCF (EBITDA) | 5.05 | -97.6% |
| 10-Year DCF (EBITDA) | 33.34 | -84.1% |
Is Silicon Laboratories Inc (SLAB) a buy or a sell? Silicon Laboratories Inc is definitely a sell. Based on our DCF analysis, Silicon Laboratories Inc (SLAB) appears to be overvalued with upside potential of -112.8%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider reducing exposure at the current market price of $209.13.