• If you are wondering whether MACOM Technology Solutions Holdings at around US$276.97 is still good value after a strong run, you are not alone.
• The stock has seen returns of 7.3% over the last 7 days, 26.5% over 30 days, 58.3% year to date, 184.7% over 1 year and 354.0% over 5 years, which naturally raises questions about what is already priced in.
• Recent coverage has focused on MACOM Technology Solutions Holdings as a semiconductor name that investors are watching closely, with attention on how its positioning in the sector lines up with current expectations. These headlines provide useful context when you think about whether the recent share price moves align with the underlying business.
• Despite that backdrop, the Simply Wall St valuation model currently gives MACOM Technology Solutions Holdings a value score of 0/6. The next sections will walk through what different valuation approaches say about the stock and then finish with a way to get an even richer view of what that valuation really means.

MACOM Technology Solutions Holdings scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: MACOM Technology Solutions Holdings Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model takes projections of a company’s future cash flows and discounts them back to today, aiming to estimate what those cash flows are worth in present dollar terms.

For MACOM Technology Solutions Holdings, the Simply Wall St model uses a 2 Stage Free Cash Flow to Equity approach. The company’s latest twelve month free cash flow is reported at about $151.8 million. Analyst inputs and extrapolated estimates feed into a ten year path that reaches projected free cash flow of $881.4 million in 2035, with interim years such as 2026 at $259.2 million and 2028 at $468.3 million. All figures are in US$ and stay below $1b, so they are discussed in millions.

On this basis, the model arrives at an estimated intrinsic value of $106.69 per share, compared with a recent share price around $276.97. That gap translates into an implied 159.6% overvaluation according to this DCF framework.

Result: OVERVALUED

Our Discounted Cash Flow (DCF) analysis suggests MACOM Technology Solutions Holdings may be overvalued by 159.6%. Discover 59 high quality undervalued stocks or create your own screener to find better value opportunities.

Approach 2: MACOM Technology Solutions Holdings Price vs Earnings

For profitable companies, the P/E ratio is a straightforward way to see how much you are paying for each dollar of earnings. It connects directly to what many investors focus on, which is how current earnings relate to the share price.

What counts as a “normal” P/E depends on how quickly earnings are expected to grow and how risky those earnings appear. Higher expected growth or lower perceived risk can support a higher P/E, while slower growth or higher risk would usually mean a lower one.

MACOM Technology Solutions Holdings currently trades on a P/E of 128.18x. This sits well above the Semiconductor industry average of 45.20x and a peer group average of 55.79x. Simply Wall St’s Fair Ratio framework estimates what a more tailored P/E might be, given factors such as earnings growth, profit margins, industry, market cap and specific risks, and arrives at 35.54x.

This Fair Ratio is designed to be more informative than a simple comparison with peers or the broad industry, because it adjusts for company specific characteristics instead of assuming all businesses deserve the same multiple. When compared with that Fair Ratio of 35.54x, the current 128.18x P/E appears elevated.

Result: OVERVALUED

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Upgrade Your Decision Making: Choose your MACOM Technology Solutions Holdings Narrative

Earlier it was mentioned that there is an even better way to understand valuation, so Narratives are introduced here as a simple way for you to set out a clear story for MACOM Technology Solutions Holdings, link that story to your own assumptions for future revenue, earnings and margins, and then see the fair value that falls out of those forecasts.

On Simply Wall St’s Community page, Narratives let you connect the company’s business context, such as exposure to AI data centers, 5G, SATCOM, internal fabs and defense demand, to a full financial forecast that produces a fair value you can compare with the current share price to help you decide whether the stock looks expensive or cheap on your numbers.

Because Narratives on the platform are updated as new information arrives, such as analyst revisions, earnings guidance or product announcements, your fair value view can adjust over time instead of staying fixed to a single report.

For MACOM Technology Solutions Holdings, for example, one Narrative might line up with a more optimistic fair value around US$265.00 while another might align with a more cautious fair value around US$160.00. Seeing these side by side can help you decide which story, and which set of assumptions, you find more reasonable.

Do you think there's more to the story for MACOM Technology Solutions Holdings? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.