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InterDigital, Inc (IDCC) Fair Value & Analysis

Technology · US · Market cap $6.9B

II InterDigital, Inc logo InterDigital, Inc IDCC · US
Price$344.56
Fair Value$237.86
Upside-31.0%
Quality68/100
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Mixed Growth
Highly profitable · 44.2% net margin
Low debt · generates free cash flow
1.01% dividend yield
Mixed vs. peers (8/15)
Wide moat 91/100
Evidence: High Range $180.30 – $389.62 Share as image

Fair value as of: Jul 11, 2026

From 26 valuation models · updated 30 days ago

Share price +28.7% over the past month.

A solid business, but screening 31% overvalued on our models.

What matters now

  • Solid but not exceptional quality (68/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($180.30 to $389.62) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$393.78 $38.12 Fair Value $237.86 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 11, 2026.

How to read this chart

60‑month range $38.12 – $393.78 · fair‑value band $180.30 – $389.62 · the $344.56 price screens above the $237.86 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

InterDigital, Inc (IDCC) currently trades at $344.56, while our model-based Fair Value estimate is $237.86, implying the stock looks roughly 31.0% overvalued today. The Quality Score stands at 68/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, InterDigital, Inc generated revenue of $829M at a net margin of 44.2%. Revenue declined 2.4% year over year. It earns a return on equity of 35.9%. The balance sheet holds a net cash position of $233M. Fundamentals as of Jul 11, 2026

Our scenario range runs from $180.30 (bear case) to $389.62 (bull case); at $344.56, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 16% below its 52-week high and 63% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -27% fair-value upside, at -31%, IDCC screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $292.51 $537.96 $903.87 80
Residual Income $123.02 $193.50 $2,615 76
Rev-Margin DCF $150.16 $210.61 $289.44 74
All 26 models by family
DCF Models
FCF DCF $299.51 $528.78 $1,024 38
Owner Earnings $268.55 $496.31 $910.15 31
5Y Revenue Exit $152.79 $219.03 $304.49 39
5Y EBITDA Exit $244.63 $420.09 $647.31 41
5Y P/E Exit $265.82 $466.49 $706.33 38
10Y Revenue Exit $197.62 $280.75 $403.42 36
10Y EBITDA Exit $260.67 $429.90 $701.08 37
10Y P/E Exit $274.76 $464.32 $752.32 35
Earnings-Based
Graham-Dodd $106.99 $602.45 $836.95 54
Lynch FV $168.84 $241.20 $313.56 50
PEG = 1.0 $168.84 $241.20 $313.56 46
EPV $167.98 $190.09 $209.16 59
Dividend Discount
Gordon GGM $20.62 $41.09 $62.22 70
DDM Multi-Stage $20.62 $35.51 $43.37 61
Multiples
P/E Multiple $236.01 $314.68 $393.35 63
P/S Multiple $60.51 $80.67 $100.84 58
P/B Multiple $95.86 $127.81 $159.77 55
EV/EBIT $268.69 $348.93 $429.17 53
EV/EBITDA $231.07 $298.77 $366.47 54
EV/Revenue $84.43 $108.64 $132.84 43
Asset-Based
NCAV (Graham) $21.30 $28.55 $42.60 50
Growth DCF
Growth DCF $292.51 $537.96 $903.87 80
Rev-Margin DCF $150.16 $210.61 $289.44 74
Economic Profit
Residual Income $123.02 $193.50 $2,615 76
ROIC Compounder $177.36 $212.21 $250.43 72
Growth Earnings
Growth-Adj P/E $246.82 $352.60 $458.38 68

Widest divergence: DCF Models ($429.90) versus Asset-Based ($28.55). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $829M
Revenue growth (YoY) -2.4%
Net margin 44.2%
Return on equity 35.9%
Free cash flow $529M FY2025
P/E ratio 25.5
More key figures
Operating margin 40.1%
EPS (TTM) $10.44
Dividend yield 1.0%
EPS growth (YoY) -38.0%
Net cash $233M FY2025

Figures from reported company fundamentals · as of Jul 11, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 68/100

Of which business quality 68 · Market factors (momentum, volatility) 49

Profitability 76
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 89
Earnings quality: real cash, not paper profit
Fin. Strength 85
Balance sheet, leverage, solvency risk
Investment 70
Disciplined investing over empire-building
Low Volatility 27
Calm price path (market factor)
Momentum 53
Price trend over the last 3–12 months (market factor)
52W Momentum 66
Distance to the 52-week high (market factor)
Net Issuance 20
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

InterDigital, Inc. operates as a global research and development company focuses on wireless, visual, artificial intelligence (AI), and related technologies.

Full company description

InterDigital, Inc. operates as a global research and development company focuses on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing various products and services, including makers of wireless communications devices, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming. It designs and develops a range of innovations for use in digital cellular and wireless products and networks. The company also develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, 4G, and 5G wireless networks, as well as mobile terminal devices; and 3GPP technology portfolio in 5G advanced and 6G, as well as technologies for mobile phones, automobiles and autonomous vehicles, wearables, smart factories and smart homes, robots, drones, and other connected consumer electronic products. In addition, it provides video coding and transmission technologies, and artificial intelligence and machine learning solutions. Further, the company's patented technologies are used in various products that include smartphones, tablets, consumer electronics, base stations, televisions, laptops, gaming consoles, set-top boxes, streaming devices, and connected automobiles, as well as patented technologies are used in various services, such as video streaming, user generated content sharing, video conferencing, video gaming, and other cloud-based services. InterDigital, Inc. was incorporated in 1972 and is headquartered in Wilmington, Delaware.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

InterDigital, Inc reported revenue of $834M in FY2025 versus $425M in FY2021, a compound +18.3%/yr. Reported net income was $407M in FY2025, compounding +64.7%/yr from FY2021.

Growth Quality 86/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$834M
Latest YoY
−4.0%
Avg. growth/yr (3Y)
+22.1%
Avg. growth/yr (5Y)
+18.4%
Avg. growth/yr (40Y)
+21.9%
Revenue +18.3%/yr
FY21 $425M
FY22 $458M
FY23 $550M
FY24 $869M
FY25 $834M
Net income +64.7%/yr
FY21 $55.3M
FY22 $93.7M
FY23 $214M
FY24 $359M
FY25 $407M

IDCC screens 31% overvalued. Compare with SAP SE →

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Cite: Fair Value Calculator (2026). "InterDigital, Inc Fair Value". https://www.fairvalue-calculator.com/stock/IDCC

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Software - Application · 709 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 68 · Top 25%
Fair Value upside −31% · Above median
Return on equity (TTM) 36% · Top 25%
Return on assets 13% · Top 25%
Net margin (TTM) 44% · Top 25%
Operating margin (TTM) 40% · Top 25%
Revenue growth -2% · Below median
Dividend yield (TTM) 1.0% · Below median
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Software - Application median · lower = cheaper

P/E (TTM) 25.5× · Pricier than median
P/B 6.25× · Pricier than 75% of peers
P/S (TTM) 8.30× · Pricier than 75% of peers
P/FCF 13.0× · Pricier than median
EV/EBITDA 12.6× · Cheaper than median
PEG 1.32× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 0 · sector 38
PAST 100 · sector 13
HEALTH 99 · sector 98
DIVIDEND 20 · sector 28

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Software - Application stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

Stock Price Fair Value vs Fair Value
SAP SE SAPS C$12.69 C$16.26 +28%
Shopify Inc SHOP C$173.23 C$20.54 -88%
Uber Technologies, Inc UBER $72.67 $51.11 -30%
Salesforce, Inc CRM $170.77 $182.10 +7%
ServiceNow, Inc NOW $107.71 $33.12 -69%
Cadence Design Systems, Inc CDNS $384.17 $80.41 -79%
Snowflake Inc SNOW $271.87 $34.04 -87%
Adobe Inc ADBE $230.61 $379.48 +65%
Automatic Data Processing, Inc ADP $241.92 $177.51 -27%
Intuit Inc INTU $291.09 $258.69 -11%

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Frequently asked questions

Is InterDigital, Inc (IDCC) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of $237.86 versus a price of $344.56, about −31% (overvalued).
What is the fair value of IDCC?
Our model-based fair value for InterDigital, Inc is $237.86 (as of Jul 11, 2026), built from audited fundamentals. The current price is $344.56.
What is the quality score of IDCC?
InterDigital, Inc has a Quality Score of 68/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of InterDigital, Inc (IDCC)?
InterDigital, Inc reported trailing-twelve-month revenue of about $829M (latest available figure, as of Jul 11, 2026).
What is the net profit margin of IDCC?
The net profit margin of InterDigital, Inc is about 44.2%, meaning it keeps roughly 44.2% of revenue as net income. Based on the latest reported figures.
Does InterDigital, Inc pay a dividend?
InterDigital, Inc currently shows a dividend yield of about 1.03% relative to its recent price (as of Jul 11, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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