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InterDigital Inc (IDCC) Fair Value & Analysis

Technology · US · Market cap $6.9B · ISIN US45867G1013

What is InterDigital Inc really worth?

II InterDigital Inc logo InterDigital Inc IDCC · US
Price$335.91
Fair Value$326.38
Upside−2.8%
Quality68/100

A solid business, currently priced close to our fair value of $326.38.

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Strengths

Highly profitable · 44.2% net margin
Low debt · generates free cash flow
Ranks above peers (9/15)
Wide moat 91/100

Risks

!Mixed Growth (revenue 5y +18.4 %/yr)
!Weak on dividend: 16 out of 100

For context

·0.80% dividend yield
Evidence: High Range $232.91 – $462.32

Fair value as of: Sep 1, 2026

From 26 valuation models · updated 4 days ago

Share price +3.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • A fairly wide model range ($232.91 to $462.32) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

$393.78 $38.12 Fair Value $326.38 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 1, 2026.

How to read this chart

60‑month range $38.12 – $393.78 · fair‑value band $232.91 – $462.32 · the $335.91 price screens above the $326.38 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 1, 2026.

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Analysis

InterDigital Inc (IDCC) currently trades at $335.91, while our model-based Fair Value estimate is $326.38, implying the stock looks roughly 2.9% fairly valued today. The Quality Score stands at 68/100 (solid quality), in the Technology sector. Bull case: the DCF Models group reads highest at a median of $511.61 per share, and 13 of the 26 models we run sit above the $335.91 price. Bear case: the Dividend Discount group reads lowest at $35.51, and 13 of the 26 models stay below the price. Evidence for this calculation is 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 Sep 1, 2026

Our scenario range runs from $232.91 (bear case) to $462.32 (bull case); at $335.91, 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 18% below its 52-week high and 59% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at −38% fair-value upside, at −3%, IDCC screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $5.28 per share, which is 1.6 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF $299.51 $528.78 $1,024 76
Growth DCF $292.51 $537.96 $903.87 76
EPV $167.98 $190.09 $209.16 74
All 26 models by family
DCF Models
FCF DCF $299.51 $528.78 $1,024 76
Owner Earnings $268.55 $496.31 $910.15 73
5Y Revenue Exit $191.76 $304.34 $457.75 72
5Y EBITDA Exit $294.93 $530.24 $838.11 73
5Y P/E Exit $326.61 $599.60 $928.37 69
10Y Revenue Exit $221.54 $344.04 $536.49 66
10Y EBITDA Exit $294.12 $511.61 $866.74 66
10Y P/E Exit $315.18 $563.06 $945.11 62
Earnings-Based
Graham-Dodd $106.99 $602.45 $836.95 63
Lynch FV $168.84 $241.20 $313.56 61
PEG = 1.0 $168.84 $241.20 $313.56 57
EPV $167.98 $190.09 $209.16 74
Dividend Discount
Gordon GGM $20.62 $41.09 $62.22 67
DDM Multi-Stage $20.62 $35.51 $43.37 67
Multiples
P/E Multiple $330.41 $440.55 $550.69 63
P/S Multiple $133.11 $177.48 $221.86 58
P/B Multiple $191.72 $255.63 $319.54 55
EV/EBIT $348.93 $455.92 $562.90 66
EV/EBITDA $309.18 $402.92 $496.66 67
EV/Revenue $140.91 $189.31 $237.72 54
Asset-Based
NCAV (Graham) $21.30 $28.55 $42.60 54
Growth DCF
Growth DCF $292.51 $537.96 $903.87 76
Rev-Margin DCF $189.12 $293.01 $431.75 72
Economic Profit
Residual Income $123.02 $193.50 $2,615 64
ROIC Compounder $177.36 $212.21 $250.43 72
Growth Earnings
Growth-Adj P/E $292.87 $418.39 $543.90 67

Widest divergence: DCF Models ($511.61) versus Asset-Based ($28.55). Highest evidence: FCF DCF (76).

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Key figures & financial health

P/E ratio 32.2
P/S ratio 15.7 P/E × margin
EPS (TTM) $10.44 price ÷ EPS = P/E 32.2
Dividend yield 0.8% payout 25.9%
Net margin 48.8% FY2025
Return on equity 35.9% TTM
More key figures
Profitability
Return on assets (EBIT) 14.2% avg 5y
Operating margin 40.1% TTM
Growth
Revenue (TTM) $829M TTM
Revenue growth (YoY) −2.4% 3y avg +22.1%
EPS growth (YoY) −38.0%
Balance sheet & cash flow
Free cash flow $529M FY2025
Net cash $233M FY2025

Figures from reported company fundamentals · as of Sep 1, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 68/100

Of which business quality 68 · Market factors (momentum, volatility) 48

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 56
Price trend over the last 3–12 months (market factor)
52W Momentum 59
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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. FY2021 was a trough year, so the rate overstates the trend.

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. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+22.1%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+18.4%
Avg. revenue growth/yr (40Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+21.9%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+53.0% (52.2 + 0.8)
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
Character of growth · EPS growth decomposed (2014-2025) +9.3 % p.a.
Revenue per share +6.7 %

of which total revenue +4.4 % · buybacks/dilution +2.1 %

EBIT margin −0.8 %
Tax rate +2.4 %
Residual (interest, one-offs) +0.8 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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

Recent news

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

Peer Group

Software - Application · 691 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 −3% · 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) 0.8% · Below median
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Software - Application median · lower = cheaper

P/E (TTM) 32.2× · 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

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE30 · sector 0
FUTURE0 · sector 37
PAST100 · sector 12
HEALTH99 · sector 98
DIVIDEND16 · sector 28

Insider activity: 44/100

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

Similar stocks

10 more Software - Application stocks, each showing price versus our Fair Value estimate (as of Sep 1, 2026).

Stock Price Fair Value vs Fair Value
SAP SE SAP €191.32 €169.59 −11%
Shopify Inc SHOP C$209.78 C$28.76 −86%
Uber Technologies, Inc UBER $78.82 $43.66 −45%
Salesforce, Inc CRM $252.05 $249.28 −1%
ServiceNow, Inc NOW $138.43 $43.73 −68%
Cadence Design Systems, Inc CDNS $340.39 $112.57 −67%
Snowflake Inc SNOW $329.11 $42.27 −87%
Adobe Inc ADBE $289.15 $454.04 +57%
Automatic Data Processing, Inc ADP $284.68 $177.51 −38%
Intuit Inc INTU $348.00 $363.46 +4%

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Frequently asked questions

Is InterDigital Inc (IDCC) overvalued or undervalued?
As of Sep 1, 2026, our model estimates a fair value of $326.38 versus a price of $335.91, about −3% upside (fairly valued).
What is the fair value of IDCC?
Our model-based fair value for InterDigital Inc is $326.38 (as of Sep 1, 2026), built from audited fundamentals. The current price: $335.91.
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 Sep 1, 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 0.80% relative to its recent price (as of Sep 1, 2026).
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