Micron Technology needs 20.2% annual cash-flow growth in my model. Too much?

u/TheExpectationGap · Reddit — r/ValueInvesting · September 16, 2026 at 04:42 · ⬆ 1 pts  | View on Reddit ↗
AI Summary

{"summary": "Author's DCF model implies Micron's current price requires ~20.2% annual unlevered cash-flow growth for a decade, and even his bull case ($594) sits below the $924.03 price, suggesting the stock is priced for too much.", "reason": "The author provides a fundamental valuation model and concludes the stock is overvalued based on specific cash-flow growth requirements versus historical performance.", "ideas": [{"symbol": "MU", "direction": "avoid", "thesis": "The author's model shows Micron's $924.03 price only works if unlevered cash flow compounds ~20.2% annually for ten years, while reported FCF actually fell ~18.8% per year from FY2022 to FY2025. Even his bull case values the stock at $594, well below the market price, so the shares have little room for disappointment. The main stated risk is semiconductor cyclicality, and the model uses an 11.5% discount rate with 2.5% long-run growth.", "thesis_short": "Micron priced for unrealistic 20% cash-flow growth", "quote": "At $924.03, today's price only works in my model if cash flow grows about 20.2% a year for the next 10 years.", "confidence": 0.85, "sentiment": -0.6, "timeframe": "10 years"}], "model": "gemini-3.1-flash-lite", "failure_count": 0, "verified": true, "extraction_model": "deepseek-flash"}

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u/TheExpectationGap Reddit r/ValueInvesting
Micron priced for unrealistic 20% cash-flow growth
The author's model shows Micron's $924.03 price only works if unlevered cash flow compounds ~20.2% annually for ten years, while reported FCF actually fell ~18.8% per year from FY2022 to FY2025. Even his bull case values the stock at $594, well below the market price, so the shares have little room for disappointment. The main stated risk is semiconductor cyclicality, and the model uses an 11.5% discount rate with 2.5% long-run growth.
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This Reddit post, published September 16, 2026, features u/TheExpectationGap discussing MU. 1 trade idea extracted by AI with direction and confidence scoring.

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