StocksILMN

ILMN

Illumina, Inc.Healthcare / Diagnostics & ResearchINTACT

Illumina, Inc. provides sequencing- and array-based solutions for genetic and genomic analysis in the Americas, Europe, Greater China, the Asia Pacific, the Middle East, and Africa. The company offers sequencing- and array-based instruments and consumables, which include reagents, flow cells, and library preparation; whole-genome sequencing kits, which sequence entire genomes of various size and complexity; and targeted resequencing kits, which sequence exomes, specific genes, and RNA or other genomic regions of interest. It also provides whole-genome sequencing, genotyping, noninvasive prenatal testing, and product support services. The company serves genomic research centers, academic institutions, government laboratories, and hospitals, as well as pharmaceutical, biotechnology, commercial molecular diagnostic laboratories, and consumer genomics companies. The company markets and distributes its products directly to customers, as well as through life-science distributors. The company has a collaboration with Labcorp Holdings Inc. for the development of oncology treatments through applications of sequencing solutions across the healthcare ecosystem; and strategic collaboration with Integrated DNA Technologies to enable a DRAGEN, secondary analysis pipeline for IDT xGena, FFPE and cfDNA next generation sequencing (NGS) library preparation with custom panels, delivering an integrated, end-to-end solution for somatic oncology research. It also has a data partnership with Center for Data-Driven Discovery in Biomedicine to advance research in pediatric cancer and rare disease. Illumina, Inc. was incorporated in 1998 and is headquartered in San Diego, California.

Share Price
$207.19
52W: $88 - $231.81
DCF Fair Value
$115.95
-78.7% Premium
P/E (TTM)
38.7x
ROIC
15.8%
Operating Margin
21.1%
FCF Yield
2.6%
Debt / Equity
0.89x
Piotroski Score
8/9
Altman Z-Score
3.08
Market Cap
$31.3B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($115.95)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$115.95
MOS Buy Target (-25%)
$86.96
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$207.19
DCF Fair Value
$116.17
-78.3% Premium
$798M
$100M$798M (Reported)$50,000M
10.5%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$1,300M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$7.9B
PV of Terminal Value
$10.9B
Implied Enterprise Value
$18.8B
Implied Equity Value
$17.5B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$882$974$1,077$1,190$1,315$1,374$1,436$1,500$1,568$1,638
Present Value (PV)$809$820$831$843$854$819$785$753$722$692

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-335.5% Premium
$47.57

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $5.35BVPS: $18.80
Revised Graham Formula-73.9% Premium
$119.17

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings2.4% Yield
$5.02 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.8BYield: 2.4%

Reverse DCF: Market Growth Expectation

HIGH BARRIER
14.6% CAGR (Next 10 Yrs)

At the current price of $207.19, the market is assuming the business will compound Free Cash Flow at 14.6% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
ℹ Fair expectations: Requires steady execution.
Autonomous Thesis Underwriting

Surveil ILMN with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Illumina, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 21.1% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Illumina, Inc. (ILMN) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Illumina, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Illumina, Inc. has an estimated DCF intrinsic fair value of $115.95 per share compared to its current market price of $207.19. This represents an estimated 78.7% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $47.57.

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