Computer Hardware · NASDAQ
Current Price
$643.30
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Seagate Technology Holdings plc with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Seagate Technology Holdings plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It provides mass capacity storage products, including enterprise nearline hard disk drives (HDDs), enterprise nearline solid state drives (SSDs), enterprise nearline systems, video and image HDDs, and network-attached storage drives. The company also offers legacy applications comprising Mission Critical HDDs and SSDs; external storage solutions under the Seagate Ultra Touch, One Touch, and Expansion product lines, as well as under the LaCie brand name; desktop drives; notebook drives, DVR HDDs, and gaming SSDs. In addition, it provides Lyve edge-to-cloud mass capacity platform. The company sells its products primarily to OEMs, distributors, and retailers. Seagate Technology Holdings plc was founded in 1978 and is based in Dublin, Ireland.
ROIC (TTM)
45.8%
ROE (TTM)
916.4%
FCF Yield
1.88%
The intrinsic value of STX 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 STX is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $643.30. 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 Seagate Technology Holdings plc: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Computer Hardware industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting STX'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 Seagate Technology Holdings plc, this means projecting how much free cash flow the Computer Hardware will produce over the next 5-10 years, then discounting those amounts to today's dollars. STX's ROIC of 45.8% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For STX, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
