GlobalFoundries (GFS)
Technology · NASDAQ · US
Fundamentals
Valuation and ratings
GlobalFoundries trades at $58.24, which is 53% above the $27.59 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 43 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 49.6 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About GlobalFoundries
GLOBALFOUNDRIES Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies in the United States, Europe, the Middle East, Africa, and internationally. It offers semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. The company also provides quantum technology solutions. GLOBALFOUNDRIES Inc. has a strategic partnership with the U.S. Department of Energy's Genesis Mission to accelerate scientific discovery through artificial intelligence and advanced computing. The company was incorporated in 2008 and is headquartered in Malta, New York.
GFS passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is GlobalFoundries (GFS) undervalued?
Against our discounted cash flow estimate of $27.59, GFS at $58.24 is 53% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is GFS's P/E ratio?
GFS trades at 49.6 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.