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DCF valuation

What is Power Integrations Inc worth?

With the base-case assumptions below, a discounted cash flow model on Power Integrations Inc's reported free cash flow gives $20.54 per share. The share price was $44.29 on November 9, 2026, 116% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$87.1M
Average free cash flow, last 5 years
$111.1M
Cash
$96.8M
balance sheet of September 30, 2026
Debt
$0
not reported, counted as 0
Diluted shares, fiscal 2025
56,324,000
Revenue growth per year, last 5 years
-1.9%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear-7.0%-2.5%2.0%10.0%$13.55-69%
Base-2.0%0.5%2.5%9.0%$20.54-54%
Bull3.0%3.0%3.0%8.0%$33.58-24%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$25.30$26.72$28.45$30.62$33.40
8.0%$21.77$22.69$23.78$25.08$26.68
9.0%$19.18$19.81$20.54$21.38$22.38
10.0%$17.20$17.65$18.15$18.73$19.40
11.0%$15.63$15.96$16.32$16.73$17.20

Where the presets come from

Base: years 1 to 5 grow at Power Integrations Inc's revenue growth rate over the last 5 fiscal years (-1.9% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Power Integrations Inc company page