InterDigital, Inc. (IDCC) DCF Valuation
TGM's two-stage DCF values InterDigital, Inc. (IDCC) between $176.47 and $271.11 depending on assumptions, with a base case of $220.07. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use)), fading to 2.5% long-run; the discount rate (11.2%) reflects its beta.
What would today's price require?
$283.73 is justified only if free cash flow grows about +24.9% a year (fading to 2.5% long-run) at a 11.2% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 14.8%/yr | 12.2% | $176.47 |
| Base case | 17.8%/yr | 11.2% | $220.07 |
| Optimistic | 20.0%/yr | 10.2% | $271.11 |
| Analyst DCF (FMP) | independent reference — different model | $310.74 | |
Current Price
$283.73
Market-Implied Growth
+24.9%/yr
vs +17.8% 5Y actual
Model Scenario Range
$176.47 – $271.11
model output — not a price target
IDCC DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for IDCC (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $254.5M · 0.03B shares · net cash $246.7M
Estimated Fair Value
$353.10
+24.4% vs $283.73
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 17.8%/yr FCF growth and 10-year horizon fixed. Green = above today's $283.73; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 9.2% | $440 | $460 | $484 | $512 | $544 |
| 10.2% | $378 | $393 | $410 | $429 | $451 |
| 11.2% | $330 | $341 | $353 | $367 | $382 |
| 12.2% | $292 | $300 | $309 | $319 | $330 |
| 13.2% | $260 | $266 | $273 | $281 | $289 |
About InterDigital, Inc.
InterDigital, Inc., through its affiliated companies, specializes in the design and advancement of technologies that facilitate and improve wireless communications across major global regions, including the United States, China, South Korea, Japan, Taiwan, and Europe. The company furnishes technological solutions applicable to various digital cellular and general wireless products and networks, spanning generations from 2G through 5G, as well as those based on IEEE 802 standards. Its development efforts extend to foundational cellular technologies like CDMA, TDMA, OFDM/OFDMA, and MIMO, which are integral to wireless networks from 2G to 5G and to mobile terminal devices. Additionally, InterDigital's 3GPP technology portfolio addresses emerging areas such as 5G New Radio (NR), beyond 5G (B5G), extended reality (XR) over wireless, and cellular Internet of Things (IoT). The firm also engineers technologies for a wide array of connected consumer electronics, including vehicles, wearables, smart home systems, and drones. Beyond its wireless innovations, InterDigital provides video coding and transmission solutions and actively conducts research and development in artificial intelligence. The company's patented inventions are integrated into numerous products, ranging from personal mobile devices like smartphones, tablets, and laptops, to wireless infrastructure equipment, including base stations. These proprietary technologies also power essential components, dongles, and modules for wireless devices, alongside various IoT devices and their accompanying software platforms. As of December 31, 2021, InterDigital boasted an intellectual property portfolio comprising approximately 27,500 granted patents and pending applications, covering crucial domains such as wireless communications, video coding, and display technology. Established in 1972, InterDigital, Inc. maintains its primary corporate office in Wilmington, Delaware.
- Sector
- Technology
- Industry
- Software - Application
- CEO
- Lawrence Chen