Marvell Technology, Inc. (MRVL) Intrinsic Value

DCF-based fair value calculation with Bear, Base, and Bull scenarios

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Marvell Technology, Inc. (MRVL)

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Intrinsic Value (DCF)

Current$83.05
Intrinsic$57.55
-31%
$37.19$57.55$98.00
Market implies 35% growth for 5 years
Current price reflects execution expectations above 25% growth — not unreasonable for quality businesses.
At $83, the market prices in continued strong cash flow growth (35%) — likely reflecting buybacks, margin stability, and ecosystem strength.
Range: Bear $37 → Bull $98. Current price implies expectations above the base case, closer to bull expectations.
Discount ↓Growth →21%23%25%27%
8%$74$80$87$94
10%$49$53$58$62
12%$36$39$42$45
14%$28$30$32$35

Bull Case

  • Bull case ($98) offers 18% upside at 30% growth, 8% discount

Bear Case

  • Bear case ($37) implies 55% downside at 20% growth, 12% discount
  • Price reflects 35% growth expectations vs 25% historical — high bar to clear
  • Trading 31% above base case — execution must exceed assumptions to justify
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5-Year Free Cash Flow Projection

Year 1$1.74B
Year 2$2.17B
Year 3$2.71B
Year 4$3.39B
Year 5$4.24B
Terminal$67.20B

📐 Model Inputs

Growth Rate25.0%5Y CAGR (cascade: 5Y→3Y→TTM)
Discount Rate9.5%WACC estimate
Terminal Growth3.0%Perpetuity rate
Base Free Cash Flow$1.39BTTM actual
Bear g×0.8, r+2%
Base Historical CAGR
Bull g×1.2, r−1.5%
ℹ️

DCF estimates based on historical growth rates extrapolated forward. See FAQ below for full methodology.

Frequently Asked Questions

Is MRVL stock undervalued or overvalued?
🔴 OVERVALUED

MRVL trades at $83.05 vs. our DCF-derived intrinsic value of $46.95, implying -47% downside. Using a 9.5% WACC and 25.0% FCF growth assumption, the current price requires growth rates above our estimates to be justified. Even our bull case ($74.45) suggests limited upside.

What is MRVL's intrinsic value?

Using a 5-year DCF model: Base FCF of $1.39B, projected at 25.0% 5Y CAGR (best of revenue, EPS, or FCF growth), discounted at 9.5% WACC, with 3.0% terminal growth. Terminal value calculated via Gordon Growth Model: TV = FCF₅ × (1+g) / (WACC−g). After deducting $3.39B net debt and dividing by 0.87B shares: Bear $28.84 | Base $46.95 | Bull $74.45. Current price $83.05 implies -47% to base case.

How is MRVL's fair value calculated?

DCF Methodology:

① Project FCF years 1-5 using 25.0% growth derived from 5-year historical CAGR (best of revenue, EPS, or FCF growth, with 8% floor and 25% cap).

② Calculate terminal value at year 5 using perpetuity growth model with g=3.0%.

③ Discount all cash flows to PV using WACC=9.5%.

④ Sum PV of explicit period + PV of terminal value = Enterprise Value ($44.03B).

⑤ Subtract net debt, divide by shares outstanding.

Sensitivity analysis available above—adjust WACC ±2% or growth ±3% to stress-test the valuation. Implied EV/FCF multiple: 31.7x.