InterDigital IDCC
United StatesTechnology · Software - ApplicationUSD
462.67 USD (+39.9%)
3 analysts
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InterDigital is a technology company that develops and licenses patents essential to wireless communications standards (such as 5G, 6G, and Wi-Fi), generating revenue mainly from royalty licensing to device manufacturers and operators.
Key points
from its scores- ✓High-quality business9.1
- ✓Very solid balance sheet9.0
- ✕Weak growth0.8
- ✕Unfavourable risk and backdrop4.3
- !Modest dividend5.4
AI analysis
bottom line, main risk, context and newsQuality and balance sheet are top-tier, but the decline in revenue and earnings calls for waiting until activity stabilizes before increasing exposure.
InterDigital maintains an exceptional balance sheet (net cash, ND/EBITDA -1.67) and very high profitability (ROIC 26.3%, gross margin 82.5%), but is going through a severe contraction phase: revenue is down 13.4% and earnings down 36.4%, leaving growth at minimums and the demanding valuation (P/E 38.6) without the support of expected growth.
Concentration of the business in patent renewal and litigation: if key licensing agreements are not renewed on favorable terms or legal disputes are lost, royalty revenue could keep falling, worsening the current contraction.
Context and risks
No recent news and no material exposure to current macro factors: the company has net cash, a 53.5% operating margin, and does not depend on commodities or conflict-affected shipping routes. The rise in long-term US rates does not affect its sound balance sheet or its patent licensing business model.
Is InterDigital stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Technology median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 38.6 | 31.3 | +23% |
| EV / EBITDA | 18.4 | 20.4 | −10% |
| Price / book | 7.1 | 6.3 | +13% |
| Price / sales | 10.8 | 5.3 | +105% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.7 out of 10 (median for Technology: 5.3).
Average analyst target: 462.67 USD, +39.9% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Technology medianValuation
- P/E
- 38.6
- Forward P/E
- 28.5
- EV / EBITDA
- 18.4
- Price / book
- 7.1
- Price / sales
- 10.8
- PEG
- 1.32
- Market cap
- 8.5B USD
- Enterprise value
- 7.8B USD
Profitability
- ROE
- 26.4%
- ROA
- 10.4%
- ROIC (approx.)
- 26.3%
- Gross margin
- 82.5%
- Operating margin
- 53.5%
- Net margin
- 38.3%
- Free cash flow
- 600.8M USD
- FCF yield
- 7.0%
- Cash conversion
- 142%
Solvency
- Total debt
- 401.5M USD
- Net debt
- −710.9M USD
- Cash
- 1.1B USD
- EBITDA
- 424.5M USD
- Net debt / EBITDA
- −1.67
- Debt / equity
- 33.40
- Current ratio
- 1.74
- Quick ratio
- 1.70
Growth
- Revenue growth
- −13.4%
- Earnings growth
- −36.4%
- EPS (TTM)
- 8.56 USD
- EPS (forward)
- 11.59 USD
Dividend
- Dividend yield
- 0.9%
- Payout
- 31.5%
Risk and market
- Beta
- 1.42
- Analyst consensus
- Strong buy (3)
- Target price
- 462.67 USD
- 52-week range
- 249.14 – 412.60
Recent news
All IDCC news →Compare it with its sector
All 283 in Technology →Frequently asked questions about InterDigital
Is InterDigital stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Technology median (within 15%). Valuation score: 5.7 out of 10 (median for Technology: 5.3). Average analyst target: 462.67 USD, +39.9% versus the price. This is not investment advice.
What score does InterDigital get on MeridIAn Screener?
It scores 5.9 out of 10, rank 1,078 of 2,130 (better than 47% of the companies analysed). Its strongest category is Quality / Moat (9.1) and its weakest, Growth (0.8). Analysis of 08/10/2026.
What is InterDigital's P/E ratio?
Its P/E is 38.6: the share price equals 38.6 times earnings per share over the last 12 months. The Technology median is 31.3. Based on the earnings analysts expect, the forward P/E is 28.5.
How much is InterDigital worth on the stock market?
Its market capitalisation is 8.5B USD and its enterprise value, debt included, is 7.8B USD.
How much debt does InterDigital have?
It has more cash than debt: net cash of 710.9M USD.
Does InterDigital pay a dividend?
Yes: its dividend yield is 0.91% and it pays out 32% of its earnings.
How has InterDigital stock performed over the last year?
It has fallen 2.0% over the last year, excluding dividends. Over the last 52 weeks it has traded between 249.14 and 412.60 USD. Past performance does not guarantee future results.
What do analysts think of InterDigital?
3 analysts cover it; their average recommendation is “Strong buy” and their average target is 462.67 USD (+39.9% versus the price). It is an estimate, not market data.