Unveiling Synaptics (SYNA)'s Value: Is It Really Priced Right? A Comprehensive Guide
Today, we take a closer look at Synaptics Inc (NASDAQ:SYNA), a global producer of semiconductor solutions. Despite a daily loss of 7.26% and a modest 3-month gain of 0.25%, Synaptics (NASDAQ:SYNA) boasts a respectable Earnings Per Share (EPS) (EPS) of 1.81. The question that arises is, "Is the stock modestly undervalued?" In this article, we delve into the valuation analysis of Synaptics, providing a comprehensive understanding of its intrinsic value. We encourage you to read on for an in-depth analysis.
Company Introduction
Synaptics Inc (NASDAQ:SYNA) is a renowned player in the mobile, PC, and Internet of Things markets. The company's forte lies in developing human interface solutions that enable touch, display, fingerprint, video, audio, voice, AI, and connectivity functions for various electronic devices. A majority of Synaptics' revenue is derived from China. At present, Synaptics (NASDAQ:SYNA) is trading at $82.62 per share, which when compared to its GF Value of $99.59, suggests that the stock might be modestly undervalued.
Understanding the GF Value
The GF Value is a unique measure that represents the current intrinsic value of a stock. It is calculated based on historical multiples that the stock has traded at, an adjustment factor from GuruFocus based on the company's past returns and growth, and future estimates of the business performance. The GF Value Line on our summary page provides a quick overview of the fair value that the stock should ideally be traded at. If the stock price is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. Conversely, if it is significantly below the GF Value Line, its future return will likely be higher.
According to our valuation method, the stock of Synaptics (NASDAQ:SYNA) appears to be modestly undervalued. This suggests that the long-term return of its stock is likely to be higher than its business growth.
Link: These companies may deliver higher future returns at reduced risk.This article first appeared on GuruFocus.
