MACOM (MTSI) Stock Looks Near Fair Value On Cash Flow

MACOM Technology Solutions Holdings has seen its share price move sharply in recent years, and the swings over the past few months now put a spotlight on a simple question for investors. Is the current valuation of MACOM stock grounded in the cash flows the business is expected to generate over time, or has price moved ahead of those fundamentals?

• Over the past 5 years, MACOM has delivered a total return of 154.3%, which raises the stakes on whether that long run up is still supported by the cash the business can produce.
• Recent financial results and management commentary point to higher revenue and improved profitability targets, which can affect both the level and timing of future cash flows that feed into a Discounted Cash Flow (DCF) estimate.
• What if you looked at MACOM Technology Solutions Holdings through its earnings instead? See why MACOM Technology Solutions Holdings's 60.3x P/E tells a different valuation story.

The issue now is whether MACOM's current share price, after both its strong multi year performance and recent pullback, lines up with what its cash flows suggest the intrinsic value should be.

If you want to stress test MACOM Technology Solutions Holdings' cash flow story against a broader group, line it up next to 42 high quality undervalued stocks.

Where Does MACOM Technology Solutions Holdings Sit on Cash Flow?

The Discounted Cash Flow (DCF) approach here starts with the cash MACOM Technology Solutions Holdings is already generating and then projects that forward. Latest twelve month free cash flow sits at about $198.4 million, which gives the model a concrete base rather than relying purely on distant forecasts.

Analyst and model projections then ramp that free cash flow into the mid 2030s, with estimates reaching into the low billions of dollars over time, which implies a growing cash engine rather than a shrinking one. Because those future figures are brought back to today using discount rates, the outcome is an estimated intrinsic value that sits broadly in line with the current share price of $190.35. The recently reported strong fiscal 2026 results and higher guidance into fiscal 2027 help explain why the market is comfortable valuing MACOM stock roughly in line with what this cash flow profile supports. Find out what MACOM Technology Solutions Holdings could be worth using our Discounted Cash Flow (DCF) estimate.

The MACOM Technology Solutions Holdings Narrative: What Would Justify Today's Price?

Simply Wall St Narratives pick up where this valuation puzzle for MACOM Technology Solutions Holdings' leaves off, by setting out what path for growth, margins and earnings would need to play out for the stock to be worth meaningfully more or less than today based on those cash flows, and they sit on the platform's Community page. Each one presents fair value as a thesis about how the business might evolve that you can revisit over time rather than a single frozen estimate.

One of the top community narratives on MACOM Technology Solutions Holdings: 51% undervalued

"The main factor that has to go right is that MACOM executes on its compound semiconductor capacity ramp and R&D program so that new products like high speed photodetectors, silicon photonics lasers and next generation GaN processes convert into sustained orders across a broader base of large customers."

Discover why this Narrative puts MACOM Technology Solutions Holdings at 51% undervalued.

Before acting on MACOM Technology Solutions Holdings' valuation, weigh who is at the controls

Numbers only tell part of the MACOM Technology Solutions Holdings story, because the track record, judgement and pay structure of the leadership team can heavily shape how those cash flows evolve over time. See who runs MACOM Technology Solutions Holdings and how they are paid.

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