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Marvell Technology, Inc. (MRVL)

Company Dividend Discount ModelIndustry: SemiconductorsSector: Technology

Valuation Snapshot

Stable Growth$41.16 - $74.65$55.10
Multi-Stage$40.69 - $44.56$42.59
Blended Fair Value$48.84
Current Price$93.74
Upside-47.89%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS5.39%5.39%0.240.240.230.220.180.180.170.140.140.14
YoY Growth--0.34%1.17%7.02%18.93%0.64%7.76%24.18%-2.49%-0.43%0.02%
Dividend Yield--0.38%0.35%0.59%0.38%0.41%0.69%0.68%0.68%0.94%1.41%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,474.20
(-) Cash Dividends Paid (M)206.20
(=) Cash Retained (M)2,268.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)494.84309.28185.57
Cash Retained (M)2,268.002,268.002,268.00
(-) Cash Required (M)-494.84-309.28-185.57
(=) Excess Retained (M)1,773.161,958.732,082.44
(/) Shares Outstanding (M)870.35870.35870.35
(=) Excess Retained per Share2.042.252.39
LTM Dividend per Share0.240.240.24
(+) Excess Retained per Share2.042.252.39
(=) Adjusted Dividend2.272.492.63
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.39%4.39%5.39%
Fair Value$41.16$55.10$74.65
Upside / Downside-56.09%-41.22%-20.37%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,474.202,582.712,695.982,814.222,937.643,066.483,158.47
Payout Ratio8.33%24.67%41.00%57.33%73.67%90.00%92.50%
Projected Dividends (M)206.20637.081,105.361,613.492,164.072,759.832,921.58

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.39%4.39%5.39%
Year 1 PV (M)578.36583.95589.55
Year 2 PV (M)910.98928.69946.57
Year 3 PV (M)1,207.191,242.561,278.61
Year 4 PV (M)1,469.881,527.581,586.96
Year 5 PV (M)1,701.751,785.661,872.84
PV of Terminal Value (M)29,542.3130,998.9632,512.51
Equity Value (M)35,410.4737,067.4038,787.04
Shares Outstanding (M)870.35870.35870.35
Fair Value$40.69$42.59$44.56
Upside / Downside-56.60%-54.57%-52.46%

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