Vicor Corporation (VICR) DCF Valuation & Fundamental Primer
Vicor Corporation (VICR) currently trades at $109.60 with an enterprise value of $412.2M. Our proprietary institutional model rates Vicor Corporation at 68/100 (Grade: B+ · Quality Software Operator). The current market price prices in an implied 5-year revenue CAGR of 75.9% vs. historical growth of 4.9% (Aggressive Growth Expectations Priced In).
Institutional fundamental teardown of Vicor Corporation (VICR) covering SEC 10-K/10-Q cash flow conversion, SBC dilution friction, and Reverse-DCF valuation hurdles.
Vicor Corporation (VICR) 3-Scenario DCF Valuation Range
Stress-test VICR'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: $109.60).
| WACC \ Terminal | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 8.5% | $21.26 -81% | $22.06 -80% | $23.00 -79% | $24.11 -78% | $25.43 -77% |
| 9.3% | $19.94 -82% | $20.58 -81% | $21.30 -81% | $22.14 -80% | $23.13 -79% |
| 10.0% | $18.86 -83% | $19.37 -82% | $19.94 -82% | $20.60 -81% | $21.36 -81% |
| 10.8% | $17.95 -84% | $18.37 -83% | $18.83 -83% | $19.36 -82% | $19.96 -82% |
| 11.5% | $17.18 -84% | $17.53 -84% | $17.91 -84% | $18.34 -83% | $18.82 -83% |
Institutional Software Quality Scorecard (68/100 · Grade B+)
Solid software model with clear operating leverage, partially offset by standard SBC or moderate burn.
Positive FCF but lower conversion efficiency due to capex or timing
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
- Low dilution friction: SBC is only 4.3% of revenue
- Net cash positive: $355.0M balance sheet buffer
Key Operational & Dilution Risks
- Lower software gross margins (51.2%), indicating higher hosting or service delivery drag
Reverse-DCF Solver: What Growth is Priced Into VICR?
The current share price demands 75.9% 5-year CAGR (85.7% net of SBC & dilution)—a +71.0% acceleration over historical run-rate (4.9%). Any growth slowdown risks valuation multiple contraction.
Headline Reverse-DCF ignores Stock-Based Compensation (4.3% of revenue) and annual share dilution (0.5%/yr). Accounting for both requires 85.7% 5-year revenue CAGR to justify $109.60/sh on a true per-share economic cash flow basis.
Vicor Corporation (VICR) 5-Year Fundamental Forecast
| Statement Line Item | TTM Audited Base | TTM | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|---|---|
| Revenue | $359.1M | $359.1M | $376.7M | $395.1M | $414.5M | $434.8M | $456.1M |
| Gross Profit | $184.0M | $184.0M | $193.0M | $202.5M | $212.4M | $222.8M | $233.7M |
| Operating Income (EBIT) | $-1.3M | $-1.3M | $-1.4M | $-1.4M | $-1.5M | $-1.6M | $-1.6M |
| Stock-Based Compensation (SBC) | $15.3M | $15.3M | $16.0M | $16.8M | $17.7M | $18.5M | $19.4M |
| Unlevered Free Cash Flow (FCF) | $27.2M | $27.3M | $28.6M | $30.0M | $31.5M | $33.0M | $34.6M |
| SBC-Adjusted True Cash Flow | $11.9M | $12.0M | $12.5M | $13.2M | $13.8M | $14.5M | $15.2M |
Software & Cloud Services Peer Comparables & Rule of 40 Regression
Rule of 40 vs. EV / Revenue Multiple Regression
OLS Fit: EV/Rev = 7.5 + 0.10 × (Rule of 40) · R² = 12%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 |
|---|---|---|---|---|---|---|---|---|
| Vicor Corporation | VICR | $4.94B | $359.1M | 51.2% | 7.6% | 12.5% | 4.3% | 12.8× |
| 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 | 12.8× | $4.58B | $4.94B | $109.60 | 0.0% |
| -20% Multiple Compression | 10.2× | $3.66B | $4.02B | $89.26 | -20.0% |
| -35% Multiple Compression | 8.3× | $2.98B | $3.33B | $74.00 | -35.0% |
| Software Baseline Floor (5.0× EV/Rev) | 5.0× | $1.80B | $2.15B | $47.75 | -60.8% |
Frequently Asked Questions: Vicor Corporation (VICR) Valuation
What is Vicor Corporation (VICR)'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, Vicor Corporation (VICR) has a Base Case implied value of $17.04 per share (with a Bear Case of $13.23 and a Bull Case of $21.24), compared to its current price of $109.60. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.
What is Vicor Corporation (VICR)'s Rule of 40 score and Free Cash Flow margin?
Vicor Corporation achieves a Rule of 40 score of 12.5%, combining a 4.9% revenue growth run-rate with a 7.6% TTM free cash flow margin on $359.1M 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 VICR stock according to Reverse-DCF analysis?
At $109.60 per share (Enterprise Value of $4.58B), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 75.9%, compared to Vicor Corporation's historical CAGR of 4.9%. Overall market expectations are rated as "Aggressive Growth Expectations Priced In".
How does Vicor Corporation compare to Software & Cloud Services software peers?
Vicor Corporation (VICR) earns an institutional Software Quality Score of 68/100 (Grade B+ — Quality Software Operator). 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 Vicor Corporation (VICR)'s valuation?
Vicor Corporation recorded $15.3M in TTM stock-based compensation (4.3% of revenue). When treating SBC as a cash-equivalent compensation expense, Vicor Corporation's SBC-adjusted free cash flow yield is 0.2%, scoring 25/25 on our Shareholder Dilution Friction pillar.