As of June 21, 2025, Xperi Holding Corp's estimated intrinsic value ranges from $12.47 to $22.43 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $22.43 | +189.8% |
| Discounted Cash Flow (5Y) | $19.38 | +150.4% |
| Dividend Discount Model (Multi-Stage) | $15.78 | +103.9% |
| Earnings Power Value | $12.47 | +61.1% |
Is Xperi Holding Corp (XPER) undervalued or overvalued?
With the current market price at $7.74, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Xperi Holding Corp'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 | 0.49 | 0.66 |
| Cost of equity | 6.1% | 8.5% |
| Cost of debt | 7.0% | 7.0% |
| Tax rate | 7.2% | 9.3% |
| Debt/Equity ratio | 0.14 | 0.14 |
| After-tax WACC | 6.1% | 8.3% |
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 | $19 | $838M | 86.8% |
| 10-Year Growth | $22 | $977M | 75.2% |
| 5-Year EBITDA | $12 | $521M | 78.8% |
| 10-Year EBITDA | $15 | $643M | 62.3% |
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 | $37M |
| Discount Rate (WACC) | 8.3% - 6.1% |
| Enterprise Value | $445M - $599M |
| Net Debt | $(48)M |
| Equity Value | $493M - $647M |
| Outstanding Shares | 46M |
| Fair Value | $11 - $14 |
| Selected Fair Value | $12.47 |
| Metric | Value |
|---|---|
| Market Capitalization | $354M |
| Enterprise Value | $306M |
| Trailing P/E | 0.00 |
| Forward P/E | 22.10 |
| Trailing EV/EBITDA | 10.60 |
| Current Dividend Yield | 569.78% |
| Dividend Growth Rate (5Y) | -13.18% |
| Debt-to-Equity Ratio | 0.14 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $6.73 |
| Discounted Cash Flow (5Y) | 29% | $4.85 |
| Dividend Discount Model (Multi-Stage) | 24% | $3.16 |
| Earnings Power Value | 12% | $1.25 |
| Weighted Average | 100% | $18.80 |
Based on our comprehensive valuation analysis, Xperi Holding Corp's weighted average intrinsic value is $18.80, which is approximately 142.9% above the current market price of $7.74.
Key investment considerations:
Given these factors, we believe Xperi Holding Corp is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.