Is Cirrus Logic, Inc. (CRUS) overvalued or undervalued?
Updated Nov 10, 2026 · hand-researched model · educational, not advice
At a recent price of $118.28, Cirrus Logic, Inc. (CRUS) sits inside a range too wide to call either way: our valuation lenses put the business somewhere between $59.05 and $231.51 per share. They disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.
The valuation discounts Cirrus Logic, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 11.1%, with a long-run terminal growth rate of 2.5%. About 68% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 10.7% annual revenue growth for CRUS. Our base case instead compounds to about 2.9% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, CRUS's modeled DCF value ranges from about $84.14 to $128.54 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Cirrus Logic, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of CRUS's intrinsic value. Figures update as new filings and prices come in.
The assumptions behind CRUS's DCF
| Input | Value | Source |
|---|---|---|
| Base-year revenue | $1,997,400,000 | Cirrus Logic FY2026 10-K (accession 0000772406-26-000018, filed 2026-05-21): Net sales $1,997,379K for the fiscal year ended 2026-03-28 (Audio $1,159.9M, High-Performance Mixed-Signal $837.4M), +5.3% on FY2025's $1,896.1M. A record year, but not an outlier: revenue was $1,538.9M in FY2017 and has compounded ~2.9%/yr since, with a dip to $1,185.5M in FY2019 and $1,788.9M in FY2024. CUSTOMER CONCENTRATION: Apple Inc. was ~91% of net sales in FY2026 (89% FY2025, 87% FY2024) per the 10-K; ~90% again in Q1 FY2027 per the shareholder letter. CROSS-CHECK: Q1 FY2027 (to 2026-06-27) revenue $459.7M, +12.9% YoY; TTM to Q1 FY2027 $2,049.8M. UNCHANGED as the base — the new quarter belongs in Year 1. |
| Base EBIT margin | 23.1% | Cirrus Logic Q4/FY2026 earnings release, 8-K Ex-99.1 (accession 0000772406-26-000012, filed 2026-05-06); ties to the FY2026 10-K: GAAP income from operations $460,380K / net sales $1,997,379K = 23.05%. This is GAAP, i.e. AFTER $81.8M of stock-based compensation and $6.6M of acquisition-intangible amortization (non-GAAP operating margin was 27.5%). It EXCLUDES $36.8M of interest income on the cash pile — deliberately, because the cash itself is credited in the net-debt bridge. It is the best margin in the company's recent history: FY2022 20.6%, FY2023 13.1%, FY2024 19.2%, FY2025 21.6%, FY2026 23.0% (XBRL OperatingIncomeLoss / revenue). CROSS-CHECK, Q1 FY2027: GAAP operating margin 18.4% vs 17.8% a year earlier — the June quarter is always the seasonal low, so the quarter is on-trend, but operating expense rose $15.8M YoY (+11%) as management lifts R&D. |
| Forecast revenue growth | 1% → 4% → 4% → 3% → 3% | Assumption — TickerWorth's 5-year explicit forecast |
| Risk-free rate | 5.2% | US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation; the program-wide rate shared by every researched model in this run. |
| Beta | 1.17 | Yahoo Finance / yfinance published beta (5Y monthly): Published 1.166, rounded to 1.17 and NOT normalized. Customer concentration (~91% Apple) is a real risk but it is company-specific, not market risk, so in CAPM terms it does not belong in beta — it is carried in the forecast (no Y1 growth, margins below the record) and in the caveats instead. A tempting alternative is to bump beta up to 'price in' Apple risk; that would double-count it. Each 0.1 of beta is worth roughly $4-5/share here (1.27 gives $95.64; 1.00 gives $108.58). |
| Terminal growth | 2.5% | Assumption — house default: House default 2.5%, roughly long-run nominal GDP, kept for comparability. Reasonable here rather than generous: Cirrus's revenue has compounded ~2.9%/yr since FY2017, and diversification (PCs, general market) is the company's stated strategy. The real terminal risk is not the rate, it is whether the Apple socket survives in perpetuity — which no growth rate captures (see caveats). 2.0% takes ~$3/share off. Well below the 11.09% WACC. |
| Diluted shares | 52M | Cirrus Logic Q1 FY2027 10-Q (accession 0000772406-26-000037, filed 2026-08-05): Q1 FY2027 weighted-average diluted shares 52,353K (basic 50,550K); FY2026 was 52,822K and FY2025 55,241K — the count falls ~2-4% a year because buybacks ($280M in FY2026) more than offset SBC. After the quarter Cirrus bought another 359,350 shares for $50.5M; that lowers both the share count (~0.7%) and the cash pile, and is left out of both for consistency with the 2026-06-27 balance sheet. |
| Market price | $118.28 | Delayed quote · as of 2026-11-10 05:54 UTC |
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Most undervalued stocks (per our valuation) · Undervalued Technology stocks · All valued stocks · Interactive CRUS valuation & downloadable modelTickerWorth is an educational DCF tool, not a licensed investment adviser. Figures are estimates derived from public filings and market data and can be wrong.