Xilinx Inc. Quarterly Valuation – February 2015 $XLNX

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Xilinx should attract both the Enterprising Investor and the more conservative Defensive Investor. The Defensive Investor is only concerned with the high PB ratio, while the Enterprising Investor has no initial concerns. Therefore, all value investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.

From a valuation side of things, the company has grown its EPSmg (normalized earnings) from $1.64 in 2011 to an estimated $2.14 for 2014. This is a strong level of demonstrated growth, and is in line with the market’s implied estimate for earnings growth of 4.85% over the next 7-10 years. The ModernGraham valuation model, therefore, returns an estimate of intrinsic value falling within a margin of safety relative to the current price, indicating the company is fairly valued at the present time.

Be sure to check out previous ModernGraham valuations of Xilinx Inc. (XLNX) for greater perspective!

Read the full valuation on Seeking Alpha!

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Disclaimer:  The author did not hold a position in Xilinx Inc. (XLNX) at the time of publication and had no intention of changing that position within the next 72 hours.  Logo taken from Wikipedia for the sole purpose of identifying the company; this article is not affiliated with the company in any manner.


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