What changed
$MRVL — AVOID 📊 | 6 MONTHS THESIS
🎯 FQ1 FY2027 (ends Apr) | reported May 27 | Rev $2.4B | EPS $0.80 vs $0.79 🟢 | Margin 14.0%
💡 Consensus modestly raised after a 1-cent EPS beat, but the market is ignoring the disconnect between a 45x P/E multiple and a reverse DCF that implies -1.1% FCF growth. The $9B trailing FCF is unsustainably high (93% margin on annualized revenue), and even a partial mean-reversion will crush the current multiple.
📉 Reward/risk: 0.65:1
🏢 Business Quality: 7/10
📊 Valuation: rich — trading at 45.5x trailing P/E vs. a peer band base of 18.0x and a bull extreme of 47.8x; EV/EBITDA and FCF yield (27x P/FCF) also signal...
🔮 Catalyst: Next quarterly report or FCF guidance (likely in ~3 months)
💰 Entry: $281.26, stop $260, target $295
📊 Our read: AVOID. Full analysis →
https://stockduty.xyz/s/MRVL0626