Why we don't show a single “fair value” for SLAB
A trailing-FCF DCF can't fairly anchor Silicon Laboratories Inc. right now — free cash flow has been negative in recent years. For a company in this position, trailing free cash flow understates what the business actually earns for owners, so any “fair value” built on it would be misleadingly low. Off today's cash-flow base, no plausible growth rate bridges to the current price — the market is valuing normalized future cash flows, not the depressed base. The model scenarios below are shown for reference only.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 11.8% | $14.07 |
| Base case | 2.0%/yr | 10.8% | $14.64 |
| Optimistic | 5.0%/yr | 9.8% | $15.67 |
Current Price
$222.76
Market-Implied Growth
N/A
Base-Case Model Value
$14.64
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 SLAB (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 $9.8M · 0.03B shares · net cash $364.2M
Estimated Fair Value
$14.64
-93.4% vs $222.76
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 2.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $222.76; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.8% | $15.27 | $15.51 | $15.78 | $16.11 | $16.49 |
| 9.8% | $14.76 | $14.93 | $15.14 | $15.37 | $15.63 |
| 10.8% | $14.36 | $14.49 | $14.64 | $14.82 | $15.01 |
| 11.8% | $14.03 | $14.14 | $14.26 | $14.39 | $14.54 |
| 12.8% | $13.77 | $13.85 | $13.95 | $14.05 | $14.17 |
