US Equities Analysis

NXPI — NXP Semiconductors

Research evidence pack

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 27.66%
Profit Margins 21.03%
Return on Equity 25.81%
Return on Assets 8.14%
Free Float 0.25B
Dividend Yield 1.36%
Short Int % Utilisation 3.66%

2.2 Growth

Metric Value
Revenue Growth 12.2%
Free Cash Flow 2.73B
EBITDA 19.34 (Ratio)
Enterprise Value 80.46B
EV/Revenue 6.38
EV/EBITDA 19.34

Revenue growth of 12.2% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 17.26%
Risk / Std Dev (Ann.)* 49.17%
1-Year Price Return* 4.42%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $234.71
52-Week Range $183.00 – $339.95
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $12.27B
Prior annual revenue $12.61B
EBIT $3.13B
Tax rate 19.70%
NOPAT = EBIT × (1 − tax rate) $2.51B
Forecast start-growth basis -2.74%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $2.51B
Add: depreciation & amortisation $832.00M
Less: capital expenditure -$537.00M
Less/(add): working-capital cash-flow movement -$587.00M
Current unlevered FCFF $2.22B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 -2.74% $2.44B $809.24M -$522.31M -$570.95M $2.16B $2.03B
2 -1.43% $2.41B $797.70M -$585.57M -$562.80M $2.06B $1.72B
3 -0.12% $2.41B $796.76M -$655.51M -$562.14M $1.99B $1.47B
4 1.19% $2.43B $806.26M -$734.79M -$568.84M $1.94B $1.27B
5 2.50% $2.50B $826.41M -$826.41M -$583.06M $1.91B $1.12B

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 1.82
Cost of equity 14.75%
Pre-tax cost of debt 4.04%
WACC 12.71%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $19.20B
Implied terminal EV / EBITDA 4.88x
Terminal value as % of enterprise value 58.08%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $7.62B
Present value of terminal value $10.55B
Indicated enterprise value $18.17B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $18.17B
Less: gross interest-bearing debt $12.22B
Add: cash and equivalents $2.91B
Add: affiliate investments $0.00
Less: minority interests $395.00M
Indicated common equity value $8.46B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 254,331,000.00
Share-count basis reported diluted weighted-average shares
Current market price $225.33
DCF indicative value per share $33.26
Indicative value vs. market price -85.24%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% review required

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 4/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:44:22.686556 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

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