Semtech Corporation (SMTC) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-116.1%

-$20.34

vs $126.12 price

Levered DCF

$7.57

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

8.76

Safe zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	-176.46×	-25.37×	-1.25×	34.02×	36.65×	80.87×	104.92×	49.53×
P/B	13.05×	7.57×	-4.45×	2.76×	6.23×	6.94×	4.93×	4.6×
P/S	6.83×	4.51×	1.58×	2.75×	6.21×	8.15×	6.09×	5×
EV / EBITDA	113.76×	-100.44×	-3.08×	24.37×	24.62×	43.11×	35.86×	21.94×
Gross margin	51.6%	50.1%	43.0%	63.3%	62.2%	59.7%	58.5%	55.9%
Operating margin	12.7%	6.8%	-3.9%	21.0%	19.2%	12.5%	9.3%	14.2%
Net margin	-3.8%	-17.8%	-125.7%	8.1%	17.0%	10.1%	5.8%	11.1%
Current ratio	2.37×	2.07×	2.46×	1.82×	3.91×	4.33×	4.67×	3.74×
Debt / equity	0.9×	1.03×	-4.48×	1.78×	0.24×	0.26×	0.29×	0.31×
Interest coverage	3.34×	0.69×	-0.32×	10.29×	23.56×	14×	5.58×	9.65×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	-7.3%	-29.8%	355.2%	8.1%	17.0%	8.6%	4.7%	10.2%
Return on invested capital	11.7%	4.6%	-2.9%	5.6%	12.6%	7.2%	3.8%	9.3%
Return on assets	-2.9%	-11.4%	-79.5%	2.4%	11.1%	5.5%	3.0%	6.6%
Free cash flow yield	2.2%	1.1%	-9.1%	4.7%	3.8%	1.8%	2.9%	5.3%
Earnings yield	-0.6%	-3.9%	-79.8%	2.9%	2.7%	1.2%	1.0%	2.2%
Enterprise value	$7.5B	$4.5B	$2.6B	$3.2B	$4.5B	$4.8B	$3.2B	$3B
Net debt / EBITDA	4.6×	-9.04×	-1.47×	8.47×	-0.57×	-0.78×	-1.05×	-0.73×
Cash conversion cycle (days)	148	159	137	219	118	100	81	73