GlobalFoundries (GFS) Stock Could Be 35% Overvalued On New York Fab Plans

GLOBALFOUNDRIES has delivered a 36.9% gain over the past year, even as the share price has been softer in recent weeks, which puts a sharper spotlight on whether that move is backed up by the cash the business can generate. With the stock last closing at US$47.01 and major capacity projects on the horizon, the question now is how today’s price lines up with the cash flows implied by its Discounted Cash Flow (DCF) intrinsic value estimate. GLOBALFOUNDRIES is up 36.9% over the past year, so...