MeritValue

InterDigital, Inc.

IDCCdata completeness 100%18 fiscal years on file
The thesis, from the filings

InterDigital, Inc. earns about 32% on invested capital, far above its ~9% cost of capital, but has diluted owners by 10% over 5 years — a real edge showing up in the numbers. The estimate methods put fair value between $64.35 and $467.3 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$425.4M1$457.8M2$549.6M3$868.5M3$834M3
Net income$55.3M4$93.7M5$214.1M6$358.6M6$406.6M6
Operating cash flow$130.4M7$286M8$213.7M9$271.5M9$544.5M9
Capital expenditure$2.51M10$3.16M11$4.27M12$5.85M12$15.9M12
Free cash flow (derived)$127.9M7$282.9M8$209.5M9$265.7M9$528.6M9
Total debt$422.7M13$607.1M14$607.8M15$471.8M16$474.7M16
Cash & equivalents$706.3M17$693.5M18$437.1M19$527.4M20$739M20
Diluted shares31.3M30.5M28.1M29.7M34.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$319.41
your share of equity
Profit it earned you last year
$117.96
Free cash flow it threw off
$153.32
Debt you’d be carrying
$137.69

10 shares is a claim on $319.41 of net worth that earned you $117.96 and generated $153.32 of cash last year, against $137.69 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
32% avg · 5y
FY21 13%FY22 18%FY23 33%FY24 45%FY25 49%

It earned about 32% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
+10% shares · 5y

Share count is up 10% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 12% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $64.35 and $467.3 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$467.3
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$265.7M
DCF · Growth Exit 5Y
$258.93
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$265.7M
Earnings Power Value
$64.35
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$214.1M
  • growthAssumed0.0%
Graham Number
$92.09
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $258.93
The three cases
Bear0.0%$117.78
Base20.0%$258.93
Bull20.0%$258.93

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001405495-24-000052 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001405495-25-000011 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001405495-26-000011 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001405495-24-000052 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001405495-25-000011 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001405495-26-000011 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001405495-24-000052 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001405495-25-000011 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001405495-26-000011 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001405495-24-000052 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001405495-25-000011 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001405495-26-000011 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001405495-23-000011 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0001405495-24-000052 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0001405495-25-000011 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0001405495-26-000011 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0001405495-23-000011 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001405495-24-000052 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001405495-25-000011 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001405495-26-000011 (CashAndCashEquivalentsAtCarryingValue)