4 models fit Skyworks Solutions Inc. Common Stock and they disagree: 0 of 4 land within 15% of the average.
Two or more of our models back this value.
Discount(i)Silver74
Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, Discounted cash flow, and Graham number.
ACCE opinionSkyworks Solutions Inc. Common Stock (SWKS)
Fair value (4 models)
$97.32
ACCE price target
$89.00
Rating
Undervalued
Horizon
12 months
Fair value published on 22 Oct 2026, 14:04 CEST; previously $99.25 since 22 Oct 2026, 12:04 CEST.
ACCE price target published on 26 Sept 2026, 00:00 CEST.
Rating published on 18 Oct 2026, 15:05 CEST.
Price used: $83.43 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
14.3% below
+16.6% to fair value
ACCE score
55
out of 100
Analysts
13% buy
24 covering
P/E
42.7x
forward 17.8x
1-year return
+10.1%
Dividend yield
3.45%
Skyworks Solutions Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Skyworks designs RF front-end modules and analog semiconductors that handle cellular and Wi-Fi signals in smartphones, plus automotive and industrial chips. Its edge is deep customer lock-in with top handset makers, where its RF content sits in flagship designs that are hard to swap mid-cycle, and the company holds a 40.7% gross margin that suggests real pricing power in that niche. The near-term question is whether the revenue decline, down 3.1%, bottoms as smartphone builds stabilize and automotive and industrial demand offsets handset weakness. At an 18.0B market cap, the stock trades at 13.4x forward earnings against 38.9x trailing, a gap that implies the market expects a sharp earnings recovery, which is the claim to test before anything else. Return on equity of 5.1% and an 8.8% operating margin leave little room for that recovery to disappoint, so this merits a deeper look at the cycle timing rather than a conclusion on valuation alone.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Earnings collapse
YoY earnings down 68.6% while revenue fell 3.1%. Operating margin 8.8% suggests operational stress despite stable gross margin at 40.7%.
high
Extreme short interest
34.4% short float is in the top decile for concern. Combined with earnings miss and negative revenue momentum, suggests material skepticism from sophisticated investors.
moderate
Valuation disconnect
Trailing P/E 39.6 vs forward 13.4 implies market expects sharp earnings recovery. Current P/E multiple is stretched relative to 5y revenue CAGR of -9.3%.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-10-11 · prices to Oct 23, 2026
Why it could do well
Consensus fair value of $105.32 implies 38.0% upside from the current $76.35 share price across all four valuation models.
Strong balance sheet with 0.12 debt to equity and $449M free cash flow supports a 2.5% yield while the company reduced share count by 4.0% last year.
Why it could disappoint
Revenue has declined 3.1% year over year and 9.3% on a five-year average basis, indicating structural headwinds rather than cyclical weakness.
Analyst consensus mean price target of $75.65 sits 0.9% below the current share price, with only 13% of analysts rating the stock Buy or Strong Buy.
Current valuation implies only 2.0% annual cash flow growth over the next five years, leaving little room for error given persistent margin pressure.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 3, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where SWKS's valuation models land
Price
$83.43
Model fair value
$97.32
Model range
$51.46 to $149
Fair value $97.32
Price $83.43
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores