InterDigital Stock Price and Value Analysis

Should you buy InterDigital stock? (NasdaqGS:IDCC). Let's see how it does in our automated value investing analysis system.

IDCC Free Cash Flow Trend

Free Cash Flow trendline for IDCC
Free Cash Flow trendline for InterDigital

Based on historical returns, we believe that InterDigital can grow its free cash at a rate of about 2%. That's positive!

AdvantagesDisadvantages
  • This company has an average dividend yield.
  • This company has fluctuating growth.
  • This company is solid.
  • This company is making money at a modest rate.
  • This stock looks overpriced.

Inside the IDCC Numbers

IDCC Price
(InterDigital stock price per share)
$63.08
[?] IDCC Fair Price
(based on intrinsic value)
$52.83
[?] IDCC Safety Price (based on a variable margin of safety) $34.34
[?] PE Ratio versus Sector 166% higher than other Technology stocks
[?] PE Ratio versus Industry 4% higher than other Telecom Services stocks
[?] Cash Yield 7.10%
[?] Free Cash Flow Jitter 31%
[?] Dividend Yield 2%
Shares Shorted 1,757,469

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 1,757,469 shares shorted. With 30,417,329 shares available for purchase and an average trading volume over the past 10 trading days of 186,057, it would take at least 9.446 days for all of the short holders to cover their shorts.

Is InterDigital Stock on Sale?

We believe that InterDigital may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

InterDigital looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy IDCC Stock?

Does InterDigital have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.