TGM's two-stage DCF values InterDigital, Inc. (IDCC) between $179.18 and $276.00 depending on assumptions, with a base case of $223.61. 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 (11.1%) reflects its beta.
What would today's price require?
$350.13 is justified only if free cash flow grows about +30.3% a year (fading to 2.5% long-run) at a 11.1% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 14.8%/yr | 12.1% | $179.18 |
| Base case | 17.8%/yr | 11.1% | $223.61 |
| Optimistic | 20.0%/yr | 10.1% | $276.00 |
| Third-party model estimate (FMP) | independent reference · retrieved Sep 11, 2026 · assumptions not provided | $294.03 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$350.13
Market-Implied Growth
+30.3%/yr
vs +17.8% 5Y actual
Model Scenario Range
$179.18 – $276.00
model output — not a price target
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 $264.3M
Estimated Fair Value
$223.61
-36.1% vs $350.13
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 $350.13; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 9.1% | $263 | $278 | $295 | $315 | $338 |
| 10.1% | $231 | $242 | $254 | $269 | $285 |
| 11.1% | $206 | $214 | $224 | $234 | $246 |
| 12.1% | $185 | $192 | $199 | $208 | $217 |
| 13.1% | $168 | $174 | $180 | $186 | $193 |