As of May 27, 2025, TTM Technologies Inc's estimated intrinsic value ranges from $12.39 to $44.08 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $44.08 | +54.2% |
| Discounted Cash Flow (5Y) | $35.15 | +23.0% |
| Dividend Discount Model (Multi-Stage) | $22.89 | -20.0% |
| Dividend Discount Model (Stable) | $12.39 | -56.7% |
| Earnings Power Value | $12.84 | -55.1% |
Is TTM Technologies Inc (TTMI) undervalued or overvalued?
With the current market price at $28.59, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate TTM Technologies Inc'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 | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.05 | 1.24 |
| Cost of equity | 8.7% | 11.8% |
| Cost of debt | 5.0% | 5.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.32 | 0.32 |
| After-tax WACC | 7.5% | 9.9% |
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 | $35 | $4,095M | 82.9% |
| 10-Year Growth | $44 | $5,002M | 68.7% |
| 5-Year EBITDA | $36 | $4,149M | 83.1% |
| 10-Year EBITDA | $44 | $5,042M | 68.9% |
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 | $156M |
| Discount Rate (WACC) | 9.9% - 7.5% |
| Enterprise Value | $1,575M - $2,080M |
| Net Debt | $523M |
| Equity Value | $1,052M - $1,558M |
| Outstanding Shares | 102M |
| Fair Value | $10 - $15 |
| Selected Fair Value | $12.84 |
| Metric | Value |
|---|---|
| Market Capitalization | $2905M |
| Enterprise Value | $3428M |
| Trailing P/E | 37.24 |
| Forward P/E | 29.34 |
| Trailing EV/EBITDA | 9.60 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.32 |
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% | $13.23 |
| Discounted Cash Flow (5Y) | 25% | $8.79 |
| Dividend Discount Model (Multi-Stage) | 20% | $4.58 |
| Dividend Discount Model (Stable) | 15% | $1.86 |
| Earnings Power Value | 10% | $1.28 |
| Weighted Average | 100% | $29.73 |
Based on our comprehensive valuation analysis, TTM Technologies Inc's weighted average intrinsic value is $29.73, which is approximately 4.0% above the current market price of $28.59.
Key investment considerations:
Given these factors, we believe TTM Technologies Inc is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.