Logitech International S.A. (LOGI) DCF Valuation & Fundamental Primer
Logitech International S.A. (LOGI) currently trades at $99.51 with an enterprise value of $8.29B. Our proprietary institutional model rates Logitech International S.A. at 80/100 (Grade: A · High-Quality Compounder). The current market price prices in an implied 5-year revenue CAGR of 7.4% vs. historical growth of -3.5% (Aggressive Growth Expectations Priced In).
Institutional fundamental teardown of Logitech International S.A. (LOGI) covering SEC 10-K/10-Q cash flow conversion, SBC dilution friction, and Reverse-DCF valuation hurdles.
Logitech International S.A. (LOGI) 3-Scenario DCF Valuation Range
Stress-test LOGI's 5-year growth, target FCF margin, WACC, terminal methodology, and SBC/dilution friction in real time.
Split between 5-Year Explicit Cash Flows and Discounted Terminal Value
2D Institutional Valuation Sensitivity Heatmap
Implied share price & upside/downside spread across 25 valuation states (Current Price: $99.51).
| WACC \ Terminal | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 8.5% | $72.03 -28% | $75.59 -24% | $79.75 -20% | $84.66 -15% | $90.55 -9% |
| 9.3% | $66.16 -34% | $68.96 -31% | $72.18 -27% | $75.92 -24% | $80.30 -19% |
| 10.0% | $61.32 -38% | $63.57 -36% | $66.13 -34% | $69.05 -31% | $72.42 -27% |
| 10.8% | $57.26 -42% | $59.10 -41% | $61.17 -39% | $63.50 -36% | $66.16 -34% |
| 11.5% | $53.80 -46% | $55.33 -44% | $57.03 -43% | $58.93 -41% | $61.06 -39% |
Institutional Software Quality Scorecard (80/100 · Grade A)
Strong fundamentals, above-average cash generation, and robust competitive positioning.
Elite deferred revenue float; FCF exceeds operating income by >20%
Minimal dilution friction; management compensation aligned with shareholders
Sub-par gross margins; higher cost of delivery or hardware/services mix
Positive net cash cushion; self-funding operations with zero insolvency risk
Core Investment Strengths & Moats
- High-grade cash conversion: FCF is 120% of EBIT driven by upfront annual collections
- Low dilution friction: SBC is only 2.0% of revenue
- Net cash positive: $1.41B balance sheet buffer
Key Operational & Dilution Risks
- Lower software gross margins (43.3%), indicating higher hosting or service delivery drag
Reverse-DCF Solver: What Growth is Priced Into LOGI?
The current share price demands 7.4% 5-year CAGR (9.2% net of SBC & dilution)—a +10.9% acceleration over historical run-rate (-3.5%). Any growth slowdown risks valuation multiple contraction.
Headline Reverse-DCF ignores Stock-Based Compensation (2.0% of revenue) and annual share dilution (0.2%/yr). Accounting for both requires 9.2% 5-year revenue CAGR to justify $99.51/sh on a true per-share economic cash flow basis.
Logitech International S.A. (LOGI) 5-Year Fundamental Forecast
| Statement Line Item | TTM Audited Base | TTM | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|---|---|
| Revenue | $4.55B | $4.55B | $4.40B | $4.24B | $4.09B | $3.95B | $3.81B |
| Gross Profit | $1.97B | $1.97B | $1.90B | $1.84B | $1.77B | $1.71B | $1.65B |
| Operating Income (EBIT) | $654.9M | $655.0M | $632.1M | $609.9M | $588.6M | $568.0M | $548.1M |
| Stock-Based Compensation (SBC) | $89.9M | $89.7M | $86.6M | $83.6M | $80.6M | $77.8M | $75.1M |
| Unlevered Free Cash Flow (FCF) | $786.4M | $786.6M | $759.1M | $732.5M | $706.9M | $682.2M | $658.3M |
| SBC-Adjusted True Cash Flow | $696.5M | $696.9M | $672.5M | $649.0M | $626.3M | $604.3M | $583.2M |
Software & Cloud Services Peer Comparables & Rule of 40 Regression
Rule of 40 vs. EV / Revenue Multiple Regression
OLS Fit: EV/Rev = -4.5 + 0.33 × (Rule of 40) · R² = 60%Stocks below the gold regression line trade at a discount relative to their Rule of 40 compounding efficiency.
| Company | Ticker | Market Cap | TTM Revenue | Gross Margin | FCF Margin | Rule of 40 | SBC % Rev | EV / Rev |
|---|---|---|---|---|---|---|---|---|
| Logitech International S.A. | LOGI | $14.61B | $4.55B | 43.3% | 17.3% | 13.8% | 2.0% | 2.9× |
| ServiceNow | NOW | $152.61B | $10.98B | 79.2% | 31.1% | 54.2% | 15.9% | 13.9× |
| Workday, Inc. | WDAY | $50.35B | $8.00B | 75.0% | 27.4% | 43.9% | 19.0% | 6.4× |
| Salesforce | CRM | $217.10B | $37.90B | 77.2% | 32.8% | 42.8% | 8.4% | 5.8× |
| Datadog | DDOG | $46.05B | $2.68B | 80.8% | 31.1% | 57.7% | 21.3% | 17.4× |
| Snowflake Inc. | SNOW | $71.79B | $3.63B | 66.5% | 25.2% | 57.7% | 40.8% | 20.0× |
| Hubspot | HUBS | $19.89B | $2.63B | 85.0% | 21.3% | 52.7% | 19.2% | 7.7× |
| Peer Cohort Median Benchmark (N=6) | 78.2% | 29.2% | 53.5% | 19.1% | 10.8× | |||
EV / Revenue Multiple Compression Stress Test
| Multiple Scenario | EV / Revenue | Implied Enterprise Value | Implied Equity Value | Implied Share Price | Delta vs Current |
|---|---|---|---|---|---|
| Current Multiple | 2.9× | $13.20B | $14.61B | $99.51 | 0.0% |
| -20% Multiple Compression | 2.3× | $10.56B | $11.97B | $81.53 | -20.0% |
| -35% Multiple Compression | 1.9× | $8.58B | $9.99B | $68.04 | -35.0% |
| Software Baseline Floor (5.0× EV/Rev) | 5.0× | $22.77B | $24.18B | $164.67 | +72.5% |
Frequently Asked Questions: Logitech International S.A. (LOGI) Valuation
What is Logitech International S.A. (LOGI)'s intrinsic DCF valuation and implied share price?
Based on audited SEC 10-K/10-Q filings and a 5-year 3-statement discounted cash flow (DCF) model, Logitech International S.A. (LOGI) has a Base Case implied value of $66.03 per share (with a Bear Case of $49.36 and a Bull Case of $81.23), compared to its current price of $99.51. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.
What is Logitech International S.A. (LOGI)'s Rule of 40 score and Free Cash Flow margin?
Logitech International S.A. achieves a Rule of 40 score of 13.8%, combining a -3.5% revenue growth run-rate with a 17.3% TTM free cash flow margin on $4.55B in trailing twelve-month revenue. In the Software & Cloud Services peer cohort, the median Rule of 40 benchmark is 53.5%.
What revenue growth rate is priced into LOGI stock according to Reverse-DCF analysis?
At $99.51 per share (Enterprise Value of $13.20B), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 7.4%, compared to Logitech International S.A.'s historical CAGR of -3.5%. Overall market expectations are rated as "Aggressive Growth Expectations Priced In".
How does Logitech International S.A. compare to Software & Cloud Services software peers?
Logitech International S.A. (LOGI) earns an institutional Software Quality Score of 80/100 (Grade A — High-Quality Compounder). Across its Software & Cloud Services peer group (NOW, WDAY, CRM, DDOG, SNOW), the cohort trades at a median EV/TTM Revenue multiple of 10.8× and a median gross margin of 78.2%.
How does Stock-Based Compensation (SBC) impact Logitech International S.A. (LOGI)'s valuation?
Logitech International S.A. recorded $89.9M in TTM stock-based compensation (2.0% of revenue). When treating SBC as a cash-equivalent compensation expense, Logitech International S.A.'s SBC-adjusted free cash flow yield is 4.8%, scoring 25/25 on our Shareholder Dilution Friction pillar.