Medical - Diagnostics & Research · NASDAQ
Current Price
$120.37
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Illumina, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Illumina, Inc. provides sequencing and array-based solutions for genetic and genomic analysis. Its products and services serve customers in a range of markets enabling the adoption of genomic solutions in research and clinical settings for applications in the life sciences, oncology, reproductive health, agriculture, and other emerging segments. The company provides instruments and consumables used in genetic analysis; and genotyping and sequencing services, instrument service contracts, and development and licensing agreements, as well as cancer detection testing services. Its customers include genomic research centers, academic institutions, government laboratories, and hospitals, as well as pharmaceutical, biotechnology, commercial molecular diagnostic laboratories, and consumer genomics companies. The company markets and distributes its products directly to customers in North America, Europe, Latin America, and the Asia-Pacific region, as well as sells through life-science distributors in various markets within Europe, the Asia-Pacific region, Latin America, the Middle East, and Africa. The company was incorporated in 1998 and is based in San Diego, California.
ROIC (TTM)
12.0%
ROE (TTM)
34.9%
FCF Yield
5.14%
Based on trailing twelve-month data, ILMN shows a free cash flow per share of N/A and a ROIC of 12.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 5.14% are important context metrics when evaluating ILMN's stock valuation relative to peers.
The intrinsic value of ILMN depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether ILMN is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $120.37. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Illumina, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Medical - Diagnostics & Research industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting ILMN's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Illumina, Inc., this means projecting how much free cash flow the Medical - Diagnostics & Research will produce over the next 5-10 years, then discounting those amounts to today's dollars. ILMN's ROIC of 12.0% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For ILMN, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
