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DSP Group (DSP Group) Intrinsic Value: Projected FCF : $9.58 (As of Apr. 26, 2024)


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What is DSP Group Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-26), DSP Group's Intrinsic Value: Projected FCF is $9.58. The stock price of DSP Group is $21.98. Therefore, DSP Group's Price-to-Intrinsic-Value-Projected-FCF of today is 2.3.

The historical rank and industry rank for DSP Group's Intrinsic Value: Projected FCF or its related term are showing as below:

DSPG' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.25   Med: 1.23   Max: 5.71
Current: 2.29

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of DSP Group was 5.71. The lowest was 0.25. And the median was 1.23.

DSPG's Price-to-Projected-FCF is not ranked
in the Semiconductors industry.
Industry Median: 2 vs DSPG: 2.29

DSP Group Intrinsic Value: Projected FCF Historical Data

The historical data trend for DSP Group's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

DSP Group Intrinsic Value: Projected FCF Chart

DSP Group Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.18 9.38 9.88 9.38 9.42

DSP Group Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.04 9.42 8.98 9.64 9.58

Competitive Comparison of DSP Group's Intrinsic Value: Projected FCF

For the Semiconductors subindustry, DSP Group's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


DSP Group's Price-to-Projected-FCF Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, DSP Group's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where DSP Group's Price-to-Projected-FCF falls into.



DSP Group Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get DSP Group's Free Cash Flow(6 year avg) = $10.89.

DSP Group's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Sep21)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*10.89168+159.434*0.8)/24.141
=9.58

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


DSP Group  (NAS:DSPG) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

DSP Group's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=21.98/9.578717661685
=2.29

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


DSP Group Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of DSP Group's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


DSP Group (DSP Group) Business Description

Industry
Traded in Other Exchanges
N/A
Address
2055 Gateway Place, Suite 480, San Jose, CA, USA, 95110
DSP Group Inc provides wireless chipset solutions for converged communications, delivering system solutions that combine semiconductors and software with reference designs. It provides a broad portfolio of wireless chipsets integrating DECT, Wi-Fi, PSTN, and VoIP technologies with state-of-the-art application processors. It also enables converged voice and data connectivity across diverse and enterprise consumer products, from cordless and VoIP phones to home gateways and connected multimedia screens. The company operates in three segments: Home, Unified Communications, and SmartVoice. The majority of the revenue is generated from the sale of wireless chipset solutions for converged communication at home. Its geographical segments are Hong Kong, Japan, Europe, China, Taiwan, and others.
Executives
Tali Chen officer: Chief Business Officer 2055 GATEWAY PLACE, SUITE 480 SAN JOSE CA 95110
Gabi Seligsohn director C/O DSP GROUP, INC., 2580 N. FIRST STREET, STE. 460, SAN JOSE CA 95131
Dror Levy officer: VP and CFO 5 SHENKAR STREET HERZELIYA L3 46120
Yair Seroussi director 2580 NORTH FIRST STREET SUITE 460 SAN JOSE CA 95131
Cynthia Paul director C/O DSP GROUP, INC., 5 SHENKAR STREET, HERZELIA L3 4672505
Ofer Elyakim director, officer: CEO 5 SHENKAR STREET HERZELIA L3 46120
Thomas A Lacey director C/O INTERNATIONAL DISPLAYWORKS, INC., 1613 SANTA CLARA DRIVE, STE 100, ROSEVILLE CA 95661-3542
Kenneth H Traub director
Norman P Taffe director 3901 NORTH FIRST STREET, SAN JOSE CA 95134
Patrick Tanguy director 2580 NORTH FIRST STREET SUITE 460 SAN JOSE CA 95131
William C Martin other: See Explanation of Responses C/O RAGING CAPITAL MANAGEMENT, LLC, TEN PRINCETON AVENUE, PO BOX 228, ROCKY HILL NJ 08553
Raging Capital Management, Llc other: See Explanation of Responses TEN PRINCETON AVENUE, PO BOX 228, ROCKY HILL NJ 08553-0228
Norman J. Rice director ONE MIDDLE STREET, SUITE 4, PORTSMOUTH NH 03801
Reuven Regev director 2580 NORTH FIRST STREET SUITE 460 SAN JOSE CA 95131
David Dahan officer: VP and COO 161 S. SAN ANTONIO ROAD SUITE 10 LOS ALTOS CA 94022