The Discounted Cash Flow (DCF) valuation of Maxim Integrated Products Inc (MXIM) is 51.33 USD. With the latest stock price at 103.14 USD, the upside of Maxim Integrated Products Inc based on DCF is -50.2%.

Is MXIM a buy or a sell?

Based on the latest price of 103.14 USD and our DCF valuation, Maxim Integrated Products Inc (MXIM) is a sell. Selling MXIM stocks now will result in a potential gain of 50.2%.

	Range	Selected
WACC / Discount Rate	7.3% - 9.6%	8.5%
Long-term Growth Rate	0.0% - 1.0%	0.5%
Fair Price	44.04 - 62.41	51.33
Upside	-57.3% - -39.5%	-50.2%

103.14 USD

Stock Price

51.33 USD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

MXIM DCF Valuation: Revenue & Expenses Forecast

(USD in millions)		Projections

	06-2021	06-2022	06-2023	06-2024	06-2025	06-2026

Revenue	2,633	2,894	3,031	3,182	3,316	3,529
% Growth	20%	10%	5%	5%	4%	6%

Cost of goods sold	(872)	(959)	(1,004)	(1,054)	(1,098)	(1,169)
% of Revenue	33%	33%	33%	33%	33%	33%

Selling, G&A expenses	(321)	(353)	(369)	(388)	(404)	(430)
% of Revenue	12%	12%	12%	12%	12%	12%

Research & Development	(454)	(499)	(523)	(549)	(572)	(609)
% of Revenue	17%	17%	17%	17%	17%	17%

Net interest & other expenses	(56)	(61)	(64)	(67)	(70)	(74)
% of Revenue	2%	2%	2%	2%	2%	2%

Tax expense	(102)	(129)	(135)	(142)	(148)	(157)
Tax rate	11%	13%	13%	13%	13%	13%

Net profit	827	893	935	982	1,023	1,089
% Margin	31%	31%	31%	31%	31%	31%