Semtech SMTC
United StatesTechnology · SemiconductorsUSD
212.47 USD (+9.6%)
15 analysts
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Semtech Corporation is a semiconductor company that designs and sells analog and mixed-signal integrated circuits for communications infrastructure, industrial, automotive, and consumer applications, including its LoRa technology for IoT.
Key points
from its scores- ✓Good share-price trend9.8
- ✓Strong growth8.7
- ✓High-quality business7.6
- ✕Unfavourable risk and backdrop1.1
- ✕Little or no dividend1.5
AI analysis
bottom line, main risk, context and newsThe operational strength and momentum (156.27) are real, but the current multiple already prices in near-perfect growth, and any stumble could punish the stock severely.
Semtech shows revenue growth of 32.70% and an ROE of 23.66%, with reasonable financial health (Net Debt/EBITDA of 1.79), but its valuation is extremely demanding (P/E of 128.33, EV/EBITDA of 102.63), leaving little room for error and making it vulnerable to any disappointment or a higher interest rate environment.
The main risk is the extreme valuation: with a P/E of 128.33 and an EV/EBITDA of 102.63, the stock depends on maintaining 32.70% growth and on interest rates not rising further, as any earnings disappointment or higher rate environment could trigger a severe correction.
Context and risks
No relevant recent news and no material exposure to current macro factors. The rise in long-term US rates is a general market factor already reflected in the valuation of a high-growth company like Semtech, but it does not constitute an additional specific risk to its analog and mixed-signal semiconductor business model.
Is Semtech stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 356% above the Technology median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 128.3 | 31.3 | +310% |
| EV / EBITDA | 102.6 | 20.4 | +403% |
| Price / book | 31.5 | 6.3 | +400% |
| Price / sales | 15.4 | 5.3 | +192% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 2.8 out of 10 (median for Technology: 5.3).
Average analyst target: 212.47 USD, +9.6% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 7.6 (sector 6.4), Growth 8.7 (sector 7.5).
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
- 128.3
- Forward P/E
- 33.1
- EV / EBITDA
- 102.6
- Price / book
- 31.5
- Price / sales
- 15.4
- PEG
- 1.21
- Market cap
- 18.1B USD
- Enterprise value
- 18.4B USD
Profitability
- ROE
- 23.7%
- ROA
- 5.8%
- ROIC (approx.)
- 17.3%
- Gross margin
- 52.9%
- Operating margin
- 16.2%
- Net margin
- 13.1%
- Free cash flow
- 132.7M USD
- FCF yield
- 0.7%
- Cash conversion
- 74%
Solvency
- Total debt
- 525.0M USD
- Net debt
- 320.9M USD
- Cash
- 204.1M USD
- EBITDA
- 179.3M USD
- Net debt / EBITDA
- 1.79
- Debt / equity
- 70.11
- Current ratio
- 1.70
- Quick ratio
- 0.85
Growth
- Revenue growth
- +32.7%
- EPS (TTM)
- 1.51 USD
- EPS (forward)
- 5.86 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 2.42
- Analyst consensus
- Strong buy (15)
- Target price
- 212.47 USD
- 52-week range
- 60.28 – 201.99
Recent news
All SMTC news →Compare it with its sector
All 283 in Technology →Frequently asked questions about Semtech
Is Semtech stock cheap or expensive?
On P/E and EV / EBITDA, it trades 356% above the Technology median on average. Valuation score: 2.8 out of 10 (median for Technology: 5.3). Average analyst target: 212.47 USD, +9.6% versus the price. This is not investment advice.
What score does Semtech get on MeridIAn Screener?
It scores 5.6 out of 10, rank 1,370 of 2,130 (better than 35% of the companies analysed). Its strongest category is Momentum (9.8) and its weakest, Risk & Context (1.1). Analysis of 08/10/2026.
What is Semtech's P/E ratio?
Its P/E is 128.3: the share price equals 128.3 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 33.1.
How much is Semtech worth on the stock market?
Its market capitalisation is 18.1B USD and its enterprise value, debt included, is 18.4B USD.
How much debt does Semtech have?
Its net debt (debt minus cash) is 320.9M USD. That is 1.79 times its EBITDA; the Technology median is 0.20.
Does Semtech pay a dividend?
It pays no dividend, or almost none.
How has Semtech stock performed over the last year?
It has risen 196.9% over the last year, excluding dividends. Over the last 52 weeks it has traded between 60.28 and 201.99 USD. Past performance does not guarantee future results.
What do analysts think of Semtech?
15 analysts cover it; their average recommendation is “Strong buy” and their average target is 212.47 USD (+9.6% versus the price). It is an estimate, not market data.