Marvell Technology

On valuation, the picture is expensive. The owner-earnings multiple stands at 72.0×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 24% a year, against analyst forecasts of 44%. The price, in other words, assumes less than the experts do.

Growth is solid; the safety picture is adequate. The company scores 18/20 on our value-creation score: strong value creator.

Flags to be aware of: Some accounting patterns deserve a closer look. A large part of the company's book value is the price paid for past acquisitions. Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.