Stock fact sheet · data as of
InterDigital, Inc. (IDCC): fair value, margin of safety and Wheel Score
Technology · Software - Application · United States · Blend
Is IDCC undervalued?
At 328.06 (close of 16 Oct 2026), IDCC trades within a few percent of the GLS average fair value of 341.88 (4.0% below fair value). 9 models produced a value and they split 4 above the price to 5 below. A stock priced at fair value earns about half of the Wheel Score's Value points; the rest of the score comes from health, moat, premium and stability.
There is a wide gap between DDM (41.94) and Payback Time (828.31). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files IDCC under Blend.
Nine valuation models for IDCC
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 282.51 | -14% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 110.68 | -66% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 369.23 | +13% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 139.09 | -58% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 716.16 | +118% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 458.98 | +40% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 828.31 | +152% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 41.94 | -87% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 129.98 | -60% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 16.46 | -95% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 450.00 | +37% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
InterDigital, Inc. scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 7.8/10 puts IDCC among the more durable businesses we track: over ten years the metrics the score watches (revenue, EPS, book value, margins, cash flow, ROIC) have mostly moved the right way, year after year.
Returns on capital are high - ROIC 25.6%, ROE 36.9%, ROA 19.7% - with debt at 0.44 times equity and a free-cash-flow yield of 6.4%.
The dividend yield is 0.87% with a payout ratio of 23% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Revenue Other 100% (fiscal year FY2025).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 25.6% |
|---|---|---|---|
| GLS Moat | 7.8 / 10 | ROE | 36.9% |
| Debt / equity | 0.44 | ROA | 19.7% |
| Free-cash-flow yield | 6.4% | Payout ratio | 23% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 69: Good
With a Wheel Score of 69 - the Good band - InterDigital, Inc. falls just short of the Sunday Scan's "70 or higher" rule. The parts: Value 14/25, Health 11/20, Moat 12/15, Premium 20/20, Stability 12/20; Health (11/20) scores lowest.
Implied volatility is 46% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 4,236 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 157k shares a day on a market cap of $8.5B, with a beta of 1.42 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 12 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 14 / 25 | 4% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 12 / 15 | moat 7.8/10 | |
| Premium | 20 / 20 | implied volatility 46% | |
| Stability | 12 / 20 | 157k shares/day, $8.5B cap, beta 1.42 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
InterDigital, Inc. reports earnings on 29 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Application
The 12 companies below are the closest to InterDigital, Inc. by market cap within the Software - Application industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| PCTY Paylocity Holding Corporation | 159.10 | 180.04 | +12% | 81Prime | $8.4B |
| PCOR Procore Technologies, Inc. | 55.97 | 49.21 | -14% | 45Weak | $8.5B |
| ZETA Zeta Global Holdings Corp. | 32.27 | 19.96 | -62% | 45Weak | $8.1B |
| YMM Full Truck Alliance Co. Ltd. | 8.54 | 26.74 | +68% | 73Good | $8.9B |
| APPF AppFolio Inc. | 218.61 | 168.63 | -30% | 62Fair | $7.7B |
| GTLB GitLab Inc. | 55.94 | 28.91 | -94% | 45Weak | $9.3B |
| DSGX The Descartes Systems Group Inc. | 88.64 | 64.81 | -37% | 69Good | $7.6B |
| NICE NICE Ltd. | 114.91 | 273.14 | +58% | 87Prime | $7.1B |
| ESTC Elastic N.V. | 97.24 | 93.55 | -4% | 70Good | $10.2B |
| DUOL Duolingo, Inc. | 148.93 | 284.82 | +48% | 83Prime | $6.9B |
| TTAN ServiceTitan, Inc. | 72.69 | 66.05 | -10% | 45Weak | $6.9B |
| BSY Bentley Systems, Incorporated | 36.23 | 27.56 | -31% | 72Good | $10.5B |
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Start free See the Sunday ScanQuestions about IDCC
Is IDCC undervalued right now?
Not meaningfully: at 328.06 the stock trades within a few percent of the GLS average fair value of 341.88 (4.0% below fair value, data as of 16 Oct 2026).
What is the Wheel Score of IDCC and what does it mean?
IDCC scores 69 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for IDCC?
341.88 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does InterDigital, Inc. report earnings next?
The next earnings report is due on 29 Oct 2026 (before the open), 13 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does IDCC have listed options, and how liquid are they?
Yes. The nightly snapshot found 544 listed contracts with 4,236 open interest across all expiries and implied volatility of 46% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.