Why are Analysts so Bullish on the MRVL Stock?
Photo by: Vishnu Mohanan
Where Might the MRVL Stock End Up by 2025?
Marvell Technologies (NASDAQ: MRVL) is one of the top names within the Semiconductor industry. This analysis will take a look at MRVL’s key financial metrics and ratios to determine a price prediction for the MRVL stock.
Stock forecasting is not always accurate, neither analysts nor myself can accurately predict the future, and if we could we would be very wealthy. I can, however, use available data to determine a MRVL stock price prediction to get an idea of the value behind the MRVL stock.
My 2025 MRVL Stock Forecast is $63.74.
This price target comes as a result of averaging the 2 valuation methods seen below.
- MRVL Financial Ratios (EPS and PE)
- MRVL Comparable Analysis
MRVL Financial Ratio Stock Forecast
MRVL’s EPS has been estimated to be $2.92 by the year 2025. Furthermore, MRVL’s forward PE Ratio is also expected to reach 22.69 by 2025. If we take MRVL’s forward PE and EPS and multiply them together, we reach a MRVL stock forecast of $66.25 per share for 2025.
There are other ways to predict the price, but using a combination of PE and EPS is quite a common approach.
Analyzing Comparable Companies to Determine a MRVL Stock Forecast for 2025
What Stocks are MRVL’s Closest Competitors?
To compile a list of MRVL’s closest competitors, we need to look for companies with; a stock, financial ratios, similar operations, and a similar market capitalization.
Keeping this in mind, here are MRVL’s closest competitors:
MRVL Comparable Price Forecast
Price/Book (PB Ratio): MRVL’s PB ratio is 3.12, which is less than the average P/B ratio of MRVL’s peers which is currently 4.24. This implies that Marvel is undervalued and its share price should increase by a factor of 35.75% to be considered to be at fair value
Price/Sales (PS Ratio): MRVL’s P/S ratio is 9.51, compared to the average P/S ratio of MRVL’s peers being 7.54. This implies that MRVL is overvalued and its share price should change by a factor of -20.74% to be at fair value.
Taking both of these valuations into consideration we can see that the MRVL stock is currently undervalued and should experience an increase in its stock price of (an average of) 7.51% to be considered “at fair value”. Applying this to MRVL’s current price of $56.94, yields a MRVL stock forecast price of $61.22 per share by 2025.
Are Analysts on the Same Page?
The MRVL stock is very widely covered by analysts as there are 40 ratings that have been given to the MRVL stock by analysts. These ratings are as follows:
80% of all analysts have given MRVL a ‘buy” rating. This means that there is an overall bullish sentiment around the MRVL stock from analysts, with analyst “buy” ratings forming a large majority of total ratings given.
MRVL Stock Analysis: Final Thoughts
Since my overall MRVL stock forecast for 2025 arrived at an estimated price of $63.74 and MRVL’s current price is $56.94, I would have to agree with the analysts and state that the MRVL Stock is a buy through 2025.
Originally published at https://utradea.com.