Credo Technology Group Holding Ltd (CRDO) DCF Valuation
Why we don't show a single “fair value” for CRDO
Even the optimistic scenario of a conservative trailing-FCF model ($9.29) sits far below today's price — the market is paying for growth and durability beyond what this model structure captures. 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 | 15.0%/yr | 12.5% | $8.18 |
| Base case | 18.0%/yr | 11.5% | $8.70 |
| Optimistic | 20.0%/yr | 10.5% | $9.29 |
Current Price
$238.00
Market-Implied Growth
—
Base-Case Model Value
$8.70
model output — not a price target
CRDO 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 CRDO (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 $23.1M · 0.19B shares · net cash $1.1B
Estimated Fair Value
$10.33
-95.7% vs $238.00
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 18.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $238.00; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 9.5% | $11.36 | $11.60 | $11.87 | $12.18 | $12.55 |
| 10.5% | $10.63 | $10.80 | $11.00 | $11.22 | $11.47 |
| 11.5% | $10.06 | $10.19 | $10.33 | $10.49 | $10.67 |
| 12.5% | $9.60 | $9.69 | $9.80 | $9.92 | $10.05 |
| 13.5% | $9.22 | $9.29 | $9.38 | $9.47 | $9.56 |
About Credo Technology Group Holding Ltd
Credo Technology Group Holding Ltd (CRDO) specializes in delivering advanced high-speed connectivity solutions for both optical and electrical Ethernet applications. Its operational reach extends globally, encompassing the United States, Mexico, Mainland China, Hong Kong, and various other international regions. The company's product offerings include integrated circuits (ICs), active electrical cables (AECs), and SerDes chiplets, all developed utilizing its proprietary serializer/deserializer (SerDes) and digital signal processor (DSP) technologies. Beyond hardware, Credo also provides intellectual property (IP) solutions, particularly focusing on SerDes IP licensing. Established in 2008, the firm's corporate headquarters are situated in San Jose, California.
- Sector
- Technology
- Industry
- Communication Equipment
- CEO
- William J. Brennan