* Note: Prices are in Million (M) USD.
Description:
Credo Technology Group Holding Ltd offers various high-speed connectivity solutions for electrical and optical Ethernet applications in the United States, Mexico, Malaysia, Hong Kong and internationally. The company is headquartered in San Jose, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $236 M
Debt : $13 M
EBITDA : $60 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: MANUFACTURING
Industry: SEMICONDUCTORS & RELATED DEVICES
Based on industry, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 64.99
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $-19 M
Average Revenue: $172 M
Revenue Converted To Free Cash FLow(%): -11%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 11.47%
Since Free Cash Flow (FCF) to Revenue percentage is negative, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-04-30): $437 M
Revenue 4 Years Ago (2021-04-30): $59 M
Last 5 Years Average Revenue Growth: 129%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-04-30): $181 M
Share Count 5 Years Ago (2021-04-30): $140 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.84
Trailing 12-Month Earnings Per Share (EPS): $1.47
Average Earnings Per Share (EPS): $1.66
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: -2%
Since Average ROE is negative, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $108
52-Week Low: $23
Threshold Price (15% Above 52-Week Low): $26
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $19,912 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 0.20% exposure of Total Portfolio.
Value-Trade has assigned 17 points to above Credo Technology Group Holding Ltd (CRDO) stock.
Last 3 Years Avg PE (Limited to last 3 years of EPS data) 40, Fair Value PE 20, Industry Based PE is 25 and Growth based PE is 40. Based on these all values average assigned is 31.25.
Value-Trades has assined P/E value 31.25. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.655.
The fair value of Credo Technology Group Holding Ltd (CRDO) stock should be (31.25 x $1.655) = $51.72
