Buy Call on Micron Based on Strong DCF Reassessment

30 days ago

Parkev Tatevosian, CFA

"Furthermore, when I look at valuation using my proprietary discounted cash flow model, it looks fairly valued. It doesn't look cheap. And I updated this model today and the intrinsic value per share nearly doubled because I haven't updated my micron intrinsic value per share calculation for a few months now. And the changes in expectations and free cash flow have increased by so much for Micron throughout this year that when I fully updated my model to include those new higher expectations, it nearly doubled the intrinsic value per share up to $242. Given the current market price is $251. And I apply a 5 to 10% margin of safety. So at this level the stock looks fairly valued based on my DCF calculation. Now you have a stock that looks undervalued based on the market multiples method and it looks fairly valued based on my discounted cash flow valuation and the company has several tailwinds working in its favor. So I will reiterate my buy rating for Micron stock today, November 14th, 2025."

The speaker provides a detailed analysis of Micron, highlighting that despite its high current price, the stock remains attractive due to a near-doubling in intrinsic value as per a proprietary DCF model. He underscores strong revenue and free cash flow improvements along with industry tailwinds which justify his buy rating for Micron.

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