Ingram Micro (INGM) Stock May Be 12% Undervalued After Secondary Offering

Ingram Micro Holding has delivered a strong 1 year share price run, which naturally raises the question of whether the current valuation is in line with the cash the business is expected to generate. With a Discounted Cash Flow (DCF) view available, the real issue is how that price stacks up against the stream of cash flows investors are paying for today.

• The stock has returned 42.6% over the past year, putting extra focus on whether that move is supported by the cash flowing through the business.
• The recent secondary offering at US$25.90 per share, alongside a 1,000,000 share repurchase funded with cash on hand, may influence how you think about future cash availability for growth and returns to shareholders.
• If you'd rather focus on earnings, this one's for you. See what Ingram Micro Holding's 14.3x P/E says about the price.

The issue now is whether Ingram Micro Holding's current share price is justified by the cash flows implied in its intrinsic value estimate.

If you are weighing Ingram Micro Holding against other opportunities that hinge on cash flow support for valuation, it can help to compare it with 32 high quality undervalued stocks.

Does Ingram Micro Holding Look Undervalued on Cash Flow?

The Discounted Cash Flow (DCF) approach looks at what Ingram Micro Holding might return to shareholders in future cash, then brings those dollars back to today. On this model, the business is working from latest twelve month free cash flow of about $144.3 million and assumes that cash generation grows from that base before easing into slower expansion in the 2030s. The projections imply a pattern where cash flows rise over the next several years then level out, rather than relying on perpetual high growth.

The DCF output currently points to an estimated intrinsic value that sits modestly above the recent trading level of $28.77. The secondary offering at $25.90 per share, combined with the 1,000,000 share repurchase funded by cash on hand, helps explain why the model still sees value support despite near term cash being used for buybacks instead of reinvestment. If you want to see how this implied gap compares with other stocks using the same method, you can review the detailed DCF inputs and peers via the full valuation summary. Find out what Ingram Micro Holding could be worth using our Discounted Cash Flow (DCF) estimate.

The Ingram Micro Holding Narrative: What Would Justify Today's Price?

Simply Wall St Narratives pick up where the DCF leaves off for Ingram Micro Holding's stock and outline what kind of growth, profitability and earnings path would need to occur for the current price to appear either stretched or conservative. All of this is housed on the Community page so you can see different scenarios tied back to specific assumptions rather than a single multiple or model output, and then track those assumptions against actual results as they are reported.

One of the top narratives on Ingram Micro Holding: 22% undervalued

This Narrative is the bullish analyst Narrative on Simply Wall St, built on the most optimistic analyst price target and forecasts, not one person's view.

"The main thing that has to go right is that Xvantage, cloud, cybersecurity, AI infrastructure and lifecycle services continue to scale as higher-margin, higher-ROIC profit pools…"

Discover why this Narrative puts Ingram Micro Holding at 22% undervalued.

One more thing to weigh on Ingram Micro Holding before you rely on the valuation work

Before you anchor too firmly on what Ingram Micro Holding might be worth, it helps to know that Simply Wall St's broader checks have flagged specific concerns that deserve a closer look. Take a closer look at 1 major warning sign before settling on a valuation.

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