Is It Too Late To Consider InterDigital (IDCC) After A 4x Three Year Surge?

Simply Wall St.01-17

If you are wondering whether InterDigital's share price still offers value at current levels, you are not alone. This article walks through what that price might imply about the stock. After a strong ...

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After a strong ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-idcc/interdigital/news/is-it-too-late-to-consider-interdigital-idcc-after-a-4x-thre\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is It Too Late To Consider InterDigital (IDCC) After A 4x Three Year Surge?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs It Too Late To Consider InterDigital (IDCC) After A 4x Three Year Surge?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-17 07:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/software/nasdaq-idcc/interdigital/news/is-it-too-late-to-consider-interdigital-idcc-after-a-4x-thre><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether InterDigital's share price still offers value at current levels, you are not alone. This article walks through what that price might imply about the stock. After a strong ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-idcc/interdigital/news/is-it-too-late-to-consider-interdigital-idcc-after-a-4x-thre\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1303367103.USD","symbol_name":"摩根大通多经理另类基金 A (acc)","start_time":0,"source_url":"https://simplywall.st/stocks/us/software/nasdaq-idcc/interdigital/news/is-it-too-late-to-consider-interdigital-idcc-after-a-4x-thre","article_id":"2604200910","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8041000-choice1-main-header/1585186668959"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/software/nasdaq-idcc/interdigital/news/is-it-too-late-to-consider-interdigital-idcc-after-a-4x-thre","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2604200910","pubTimestamp":1768606817,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether InterDigital's share price still offers value at current levels, you are not alone. This article walks through what that price might imply about the stock.\nAfter a strong 81.7% return over the past year and a very large 3-year gain of about 4x, the stock has recently cooled, with a 0.1% 7-day slip, a 5.0% decline over 30 days, and a 5.4% fall year to date from a last close of US$308.76.\nRecent attention on InterDigital has been shaped by ongoing interest in...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1303367103.USD":"摩根大通多经理另类基金 A (acc)","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","LU2098885051.SGD":"JPMorgan Funds - Multi-Manager Alternatives A (acc) SGD","IDCC":"InterDigital","BK4023":"应用软件"},"translate_title":"在三年飙升4倍之后，现在考虑InterDigital(IDCC)是否为时已晚？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1,"IDCC":1.5},"content_text":"If you are wondering whether InterDigital's share price still offers value at current levels, you are not alone. This article walks through what that price might imply about the stock. After a strong 81.7% return over the past year and a very large 3-year gain of about 4x, the stock has recently cooled, with a 0.1% 7-day slip, a 5.0% decline over 30 days, and a 5.4% fall year to date from a last close of US$308.76. Recent attention on InterDigital has been shaped by ongoing interest in intellectual property and licensing-focused companies, along with broader conversations about how such business models are valued compared with traditional software peers. Together, this context helps explain why the share price can move quickly as investors reassess what they are willing to pay for its earnings and cash flows. InterDigital currently has a valuation score of 4 out of 6, which suggests several checks point to the stock trading below what some models imply. Next, we look at how different valuation approaches arrive at that view and why there may be an even clearer way to size up value later in the article.  InterDigital delivered 81.7% returns over the last year. See how this stacks up to the rest of the Software industry. AdvertisementApproach 1: InterDigital Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model takes estimates of a company’s future cash flows and discounts them back to today’s dollars to arrive at an estimate of what the business might be worth per share. For InterDigital, the model uses last twelve month free cash flow of about $599.8 million and applies a 2 Stage Free Cash Flow to Equity approach. Analysts provide specific forecasts out to 2027, with projected free cash flow of $199.05 million in that year. Beyond that, Simply Wall St extrapolates cash flows out to 2035, with annual figures such as $300.60 million for 2026 and $99.15 million in 2035, each discounted back to today using the model’s assumptions. Pulling all of those discounted cash flows together, the DCF model arrives at an estimated intrinsic value of about $70.77 per share for InterDigital. Compared with the recent share price of US$308.76, this implies the stock is very richly priced, with the DCF suggesting it is overvalued by around 336.3%. Result: OVERVALUED Our Discounted Cash Flow (DCF) analysis suggests InterDigital may be overvalued by 336.3%. Discover 862 undervalued stocks or create your own screener to find better value opportunities. IDCC Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for InterDigital. Approach 2: InterDigital Price vs Earnings For a profitable company like InterDigital, the P/E ratio is a straightforward way to think about what you are paying for each dollar of current earnings. Investors usually accept a higher P/E when they expect stronger growth or see lower risk, and a lower P/E when growth is more modest or risks are higher. InterDigital currently trades on a P/E of about 16.0x. That sits below the broader Software industry average of 32.4x and also below the peer group average of 19.7x. Simply Wall St’s Fair Ratio for InterDigital is 16.5x. This is its proprietary estimate of what a “normal” P/E could look like after considering factors such as earnings growth, industry, profit margins, market cap and company specific risks. The Fair Ratio is more tailored than a simple industry or peer comparison because it tries to match InterDigital’s own profile rather than assuming it should trade like the average software stock. With the current P/E of 16.0x sitting only slightly below the Fair Ratio of 16.5x, the shares look ABOUT RIGHT on this metric. Result: ABOUT RIGHT NasdaqGS:IDCC P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1445 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your InterDigital Narrative Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives, which are simply your story about InterDigital, tied directly to your own assumptions for future revenue, earnings, margins and fair value. These assumptions are all built into a forecast on Simply Wall St’s Community page that compares your Fair Value to the current price and then updates automatically when fresh news or earnings arrive. One investor might see InterDigital as worth US$412 per share based on confidence in recurring licensing wins, while another might lean closer to US$220 if they focus more on contract risk and uncertain monetization outside smartphones. Both can clearly see how their different stories link to different numbers and decisions. Do you think there's more to the story for InterDigital? Head over to our Community to see what others are saying! NasdaqGS:IDCC 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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