Vishay Intertechnology, Inc. (VSH) DCF Valuation & Fundamental Primer
Vishay Intertechnology, Inc. (VSH) currently trades at $15.42 with an enterprise value of $4.15B. Our proprietary institutional model rates Vishay Intertechnology, Inc. at 85/100 (Grade: A · High-Quality Compounder). The current market price prices in an implied 5-year revenue CAGR of 1.9% vs. historical growth of 23.2% (Substantial Margin of Safety).
Institutional fundamental teardown of Vishay Intertechnology, Inc. (VSH) covering SEC 10-K/10-Q cash flow conversion, SBC dilution friction, and Reverse-DCF valuation hurdles.
Vishay Intertechnology, Inc. (VSH) 3-Scenario DCF Valuation Range
Stress-test VSH'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: $15.42).
| WACC \ Terminal | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 8.5% | $36.51 +137% | $38.72 +151% | $41.29 +168% | $44.34 +188% | $47.99 +211% |
| 9.3% | $32.93 +114% | $34.67 +125% | $36.67 +138% | $38.98 +153% | $41.70 +170% |
| 10.0% | $29.99 +95% | $31.39 +104% | $32.97 +114% | $34.78 +126% | $36.87 +139% |
| 10.8% | $27.54 +79% | $28.68 +86% | $29.96 +94% | $31.41 +104% | $33.05 +114% |
| 11.5% | $25.45 +65% | $26.40 +71% | $27.45 +78% | $28.63 +86% | $29.95 +94% |
Institutional Software Quality Scorecard (85/100 · Grade A)
Strong fundamentals, above-average cash generation, and robust competitive positioning.
Elite deferred revenue float; FCF exceeds operating income by >20%
Elevated equity dilution; SBC consumes substantial operating cash flow
Elite Tier-1 SaaS compounder with high gross margin and superior Rule of 40
Zero-debt fortress balance sheet with abundant net cash liquidity
Core Investment Strengths & Moats
- High-grade cash conversion: FCF is 189% of EBIT driven by upfront annual collections
- Top-quartile software unit economics: 82.8% gross margin and 56.9% Rule of 40 score
- Fortress capital structure: Zero debt and $323.0M in pure net cash
Key Operational & Dilution Risks
- Substantial SBC dilution drag: SBC is 15.2% of revenue ($60.0M)
Reverse-DCF Solver: What Growth is Priced Into VSH?
The current share price only requires 1.9% 5-year CAGR (10.5% dilution-adjusted), well below historical growth of 23.2%. If the company maintains baseline execution, there is asymmetric upside.
Headline Reverse-DCF ignores Stock-Based Compensation (15.2% of revenue) and annual share dilution (1.8%/yr). Accounting for both requires 10.5% 5-year revenue CAGR to justify $15.42/sh on a true per-share economic cash flow basis.
Vishay Intertechnology, Inc. (VSH) 5-Year Fundamental Forecast
| Statement Line Item | TTM Audited Base | TTM | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|---|---|
| Revenue | $394.4M | $394.4M | $485.9M | $598.7M | $737.6M | $908.7M | $1.12B |
| Gross Profit | $326.6M | $326.6M | $402.4M | $495.7M | $610.7M | $752.4M | $926.9M |
| Operating Income (EBIT) | $70.2M | $70.2M | $86.5M | $106.6M | $131.3M | $161.7M | $199.3M |
| Stock-Based Compensation (SBC) | $60.0M | $60.0M | $73.9M | $91.0M | $112.1M | $138.1M | $170.2M |
| Unlevered Free Cash Flow (FCF) | $132.9M | $132.9M | $163.8M | $201.8M | $248.6M | $306.2M | $377.3M |
| SBC-Adjusted True Cash Flow | $73.0M | $73.0M | $89.9M | $110.8M | $136.4M | $168.1M | $207.1M |
Software & Cloud Services Peer Comparables & Rule of 40 Regression
Rule of 40 vs. EV / Revenue Multiple Regression
OLS Fit: EV/Rev = -20.2 + 0.59 × (Rule of 40) · R² = 37%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 |
|---|---|---|---|---|---|---|---|---|
| Vishay Intertechnology, Inc. | VSH | $2.09B | $394.4M | 82.8% | 33.7% | 56.9% | 15.2% | 4.5× |
| 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 | 4.5× | $1.77B | $2.09B | $15.42 | 0.0% |
| -20% Multiple Compression | 3.6× | $1.41B | $1.74B | $12.81 | -20.0% |
| -35% Multiple Compression | 2.9× | $1.15B | $1.47B | $10.86 | -35.0% |
| Software Baseline Floor (5.0× EV/Rev) | 5.0× | $1.97B | $2.30B | $16.93 | +11.6% |
Frequently Asked Questions: Vishay Intertechnology, Inc. (VSH) Valuation
What is Vishay Intertechnology, Inc. (VSH)'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, Vishay Intertechnology, Inc. (VSH) has a Base Case implied value of $32.97 per share (with a Bear Case of $14.86 and a Bull Case of $59.14), compared to its current price of $15.42. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.
What is Vishay Intertechnology, Inc. (VSH)'s Rule of 40 score and Free Cash Flow margin?
Vishay Intertechnology, Inc. achieves a Rule of 40 score of 56.9%, combining a 23.2% revenue growth run-rate with a 33.7% TTM free cash flow margin on $394.4M 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 VSH stock according to Reverse-DCF analysis?
At $15.42 per share (Enterprise Value of $1.77B), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 1.9%, compared to Vishay Intertechnology, Inc.'s historical CAGR of 23.2%. Overall market expectations are rated as "Substantial Margin of Safety".
How does Vishay Intertechnology, Inc. compare to Software & Cloud Services software peers?
Vishay Intertechnology, Inc. (VSH) earns an institutional Software Quality Score of 85/100 (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 Vishay Intertechnology, Inc. (VSH)'s valuation?
Vishay Intertechnology, Inc. recorded $60.0M in TTM stock-based compensation (15.2% of revenue). When treating SBC as a cash-equivalent compensation expense, Vishay Intertechnology, Inc.'s SBC-adjusted free cash flow yield is 3.5%, scoring 10/25 on our Shareholder Dilution Friction pillar.