$MRVL

Explicit claim • strong conviction • basis: price target upside

Marvell sits around $250 billion market cap today. That is a 4X to a trillion dollar company.

Explicit claim • strong conviction • basis: multiple relative

The hardest part here is the price you're asked to pay for their growth. We're talking about a company that has a forward P/E of about 48. The market is essentially expecting Marvell to become a much, much larger and more profitable company. And with the 10-year Treasury yield still above 5%, you might need stellar performance just to maintain such a lofty valuation. This reduces the expected return for me without predicting a crash. And given that the forward P/E is well above its five-year average, the potential for overvaluation is there, suggesting what we see in the Simply Safe Dividends tunnel, which highlights a significant gap between fair value and current market value.

Explicit claim • strong conviction • basis: price target upside

Here's a look at the latest price target updates. The lowest price target being 270, which is incredibly low in my estimate, and the highest of the three being 325. Again, these are just the latest three. But that 32"

Explicit claim • strong conviction • basis: fair value gap

Compared to its current market price of $225, Marvell stock looks slightly overvalued when measuring using my DCF. It's selling at a forward price to earnings of 36.3, which is more expensive than the forward price to earnings of 21 that Broadcom is selling for. Marvell is trading near the higher end of the valuation that it's traded for over the past several years.