Stock Analysis on Net
Stock Analysis on Net

Marvell Technology Inc. (NASDAQ:MRVL)

Dividend Discount Model (DDM)

Microsoft Excel

In discounted cash flow (DCF) valuation techniques the value of the stock is estimated based upon present value of some measure of cash flow. Dividends are the cleanest and most straightforward measure of cash flow because these are clearly cash flows that go directly to the investor.

Intrinsic Stock Value (Valuation Summary)

Marvell Technology Inc., dividends per share (DPS) forecast

US$

Microsoft Excel
Year Value DPSt or Terminal value (TVt) Calculation Present value at 24.77%
0 DPS01 0.24
1 DPS1 0.23 = 0.24 × (1 + -3.67%) 0.19
2 DPS2 0.24 = 0.23 × (1 + 3.41%) 0.15
3 DPS3 0.26 = 0.24 × (1 + 10.50%) 0.14
4 DPS4 0.31 = 0.26 × (1 + 17.58%) 0.13
5 DPS5 0.39 = 0.31 × (1 + 24.66%) 0.13
5 Terminal value (TV5) 463.08 = 0.39 × (1 + 24.66%) ÷ (24.77% – 24.66%) 153.16
Intrinsic value of Marvell Technology Inc. common stock (per share) $153.89
Current share price $287.01

Based on: 10-K (reporting date: 2026-01-31).

1 DPS0 = Sum of the last year dividends per share of Marvell Technology Inc. common stock. See details »

Disclaimer!
Valuation is based on standard assumptions. There may exist specific factors relevant to stock value and omitted here. In such a case, the real stock value may differ significantly form the estimated. If you want to use the estimated intrinsic stock value in investment decision making process, do so at your own risk.

Required Rate of Return (r)

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Assumptions
Rate of return on LT Treasury Composite1 RF 5.64%
Expected rate of return on market portfolio2 E(RM) 17.45%
Systematic risk of Marvell Technology Inc. common stock βMRVL 1.62
 
Required rate of return on Marvell Technology Inc. common stock3 rMRVL 24.77%

1 Unweighted average of bid yields on all outstanding fixed-coupon U.S. Treasury bonds neither due or callable in less than 10 years (risk-free rate of return proxy).

2 See details »

3 rMRVL = RF + βMRVL [E(RM) – RF]
= 5.64% + 1.62 [17.45% – 5.64%]
= 24.77%

Dividend Growth Rate (g)

Dividend growth rate (g) implied by PRAT model

Marvell Technology Inc., PRAT model

Microsoft Excel
Average Jan 31, 2026 Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021
Selected Financial Data (US$ in thousands)
Cash dividends declared and paid 205,100 207,500 206,800 204,400 191,049 160,574
Net income (loss) 2,670,100 (885,000) (933,400) (163,500) (421,034) (277,298)
Net revenue 8,194,600 5,767,300 5,507,700 5,919,600 4,462,383 2,968,900
Total assets 22,285,300 20,204,500 21,228,500 22,522,100 22,108,597 10,764,924
Stockholders’ equity 14,308,400 13,427,000 14,831,400 15,637,200 15,702,097 8,435,804
Financial Ratios
Retention rate1 0.92 — — — — —
Profit margin2 32.58% -15.35% -16.95% -2.76% -9.44% -9.34%
Asset turnover3 0.37 0.29 0.26 0.26 0.20 0.28
Financial leverage4 1.56 1.50 1.43 1.44 1.41 1.28
Averages
Retention rate 0.92
Profit margin -10.77%
Asset turnover 0.26
Financial leverage 1.44
 
Dividend growth rate (g)5 -3.67%

Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30).

2026 Calculations

1 Retention rate = (Net income (loss) – Cash dividends declared and paid) ÷ Net income (loss)
= (2,670,100 – 205,100) ÷ 2,670,100
= 0.92

2 Profit margin = 100 × Net income (loss) ÷ Net revenue
= 100 × 2,670,100 ÷ 8,194,600
= 32.58%

3 Asset turnover = Net revenue ÷ Total assets
= 8,194,600 ÷ 22,285,300
= 0.37

4 Financial leverage = Total assets ÷ Stockholders’ equity
= 22,285,300 ÷ 14,308,400
= 1.56

5 g = Retention rate × Profit margin × Asset turnover × Financial leverage
= 0.92 × -10.77% × 0.26 × 1.44
= -3.67%

Dividend growth rate (g) implied by Gordon growth model

g = 100 × (P0 × r – D0) ÷ (P0 + D0)
= 100 × ($287.01 × 24.77% – $0.24) ÷ ($287.01 + $0.24)
= 24.66%

where:
P0 = current price of share of Marvell Technology Inc. common stock
D0 = the last year dividends per share of Marvell Technology Inc. common stock
r = required rate of return on Marvell Technology Inc. common stock

Dividend growth rate (g) forecast

Marvell Technology Inc., H-model

Microsoft Excel
Year Value gt
1 g1 -3.67%
2 g2 3.41%
3 g3 10.50%
4 g4 17.58%
5 and thereafter g5 24.66%

where:
g1 is implied by PRAT model
g5 is implied by Gordon growth model
g2, g3 and g4 are calculated using linear interpolation between g1 and g5

Calculations

g2 = g1 + (g5 – g1) × (2 – 1) ÷ (5 – 1)
= -3.67% + (24.66% – -3.67%) × (2 – 1) ÷ (5 – 1)
= 3.41%

g3 = g1 + (g5 – g1) × (3 – 1) ÷ (5 – 1)
= -3.67% + (24.66% – -3.67%) × (3 – 1) ÷ (5 – 1)
= 10.50%

g4 = g1 + (g5 – g1) × (4 – 1) ÷ (5 – 1)
= -3.67% + (24.66% – -3.67%) × (4 – 1) ÷ (5 – 1)
= 17.58%