VISHAY INTERTECHNOLOGY INC (VSH): what the price assumes

In the published model solve dated 2026-Q2, anchored at $33.19, VISHAY INTERTECHNOLOGY INC (VSH) is priced for +21.7% growth. boothcheck publishes no house fair value, target price, or buy/sell rating; individual model outputs and user-controlled scenarios are analytical inputs, not Boothcheck targets. Narrative composed 2026-06-28.

Generated: 2026-08-10 · Exported: 2026-08-12 · Source: https://boothcheck.com/report/VSH

Headline

What The Price Assumes (Inversion)

The assumption today's price embeds, recovered by inverting the valuation.

The operating-margin figure is value-band context at year 12: derived from the framework's value band, a separate calculation — not part of the priced-in solve.

Solve inputs: computed at a 10.2% cost of capital with 4% terminal growth over a 5-year stage; each 1pp of cost of capital moves the implied operating-profit growth ~6.8pp.

How unusual the bet is: within-range

Valuation X-Ray

Asset, earnings-power and peer-multiple models all land far below the price; ONLY the growth-DCF reaches it. The bet is durable compounding the static frames structurally cannot price (a moat/durability premium).

How the valuation models price the stock relative to the market price. Price/FV above 1.0 means the market pays more than that lens defends (expensive); at or below 1.0 the lens can defend the price.

Families that justify the price: Growth Families that call it expensive: Asset, Earnings

The models below discount at their own flat-beta convention rates (cost of equity 9.3%, WACC 7.5%); the inversion above states its own rate.

Per-Model Detail (n=4)

Economic-Unit Decomposition (Sum Of The Parts)

One or more material disclosed units has unresolved economics. Unknown/general is not evidence of homogeneity: segment SOTP is primary but incomplete, consolidated cash flow may remain only a secondary cross-check when every unit shares an enterprise basis, and one sector multiple or target margin is withheld.

No total common-equity value is stated. One or more material units lack a supported unit value. The displayed values are an indicative subtotal; consolidated debt and cash cannot be applied to a fraction of the company.

Solvency

Leverage and coverage are computed on normalized mid-cycle operating income (mid-cycle margin 8.5%); the trailing year was depressed.

Bullet Takeaways

• Vishay makes the small, unglamorous electronic components, resistors, capacitors, diodes, MOSFETs, that go into nearly everything; the company notes its parts "can populate greater than 80% of the components on the circuit board in many applications."
• The biggest swing factor is the cycle: trailing earnings collapsed to near breakeven at the trough, and the price already pays a normalized-margin multiple that assumes a strong and durable recovery.
• What to watch is order momentum and the capacity buildout: Q1 2026 book-to-bill ran 1.34, and management is spending heavily on its Vishay 3.0 capacity expansion ahead of the upturn.

Bull Case

Start with the gap between what the trailing numbers show and what the business actually is. On reported earnings Vishay looks broken, near-zero EPS, a 2.4% operating margin, the kind of figures that scream distress. But those are trough numbers from the bottom of a semiconductor and components cycle, not the steady-state economics of the company. On its own through-the-cycle margins the business earns closer to 8.5%, and the recovery is already underway. The reported numbers are the cycle, not the company.

What the company is, structurally, is a designed-in supplier across the entire electronics industry. Vishay's components are specified into customer products at the engineering stage, and once a part is "designed in to new end products," as the 10-K puts it, it tends to stay there for the life of that product. The breadth is the moat: the filing notes Vishay's "semiconductors and passive components can populate greater than 80% of the components on the circuit board in many applications," supported by a field-engineering sales force that offers "the complete breadth of the Vishay portfolio." That breadth is hard for a single-product competitor to match and gives Vishay a seat at the design table across automotive, industrial, and defense customers.

The demand tailwind behind the recovery is real and secular. The 10-K ties its capacity investment to "accelerated electrification, such as factory automation, electrical vehicles, A.I., and 5G infrastructure," all of which use more discrete and passive content per unit than the products they replace. Vishay is spending ahead of that demand, expanding internal and external capacity to scale with customers. If the cycle turns as the early order data suggests, the company emerges with more capacity, higher-margin mix, and the same designed-in positions, geared into an upturn it has been investing through.

Bear Case

The capital-allocation choice at the center of this story cuts both ways, and the bear sees the risk side. Vishay is spending heavily on capacity, the Vishay 3.0 expansion, precisely when its own profitability is at a cyclical low. The 10-K is candid about the danger: "capacity that we add during upturns in the business" can become a fixed-cost burden if demand disappoints, and a "slowdown in demand or recessionary trends in the global economy makes it more difficult for us to predict our future sales and manage our operations." Building capacity into a hoped-for recovery is the classic cyclical trap: get the timing wrong and the new plants sit underutilized, dragging margins lower for years. The company is making a large, irreversible bet on the cycle turning on schedule.

The price assumes that bet pays off and then some. At today's level the market pays about 36 times normalized operating income, which inverts to growth held near the self-funding ceiling for roughly twelve years. That is a long runway for a business whose end markets are inherently cyclical and whose pricing is exposed to Asian competitors in commoditized component lines. History is unkind to that duration: only about 15% of comparable fast-growers sustained this pace for even a decade. Strip the recovery assumption and the static value methods land far below the price, in the teens of dollars per share, because the earnings power at trough margins simply is not there.

The balance sheet is the saving grace and the constraint. Vishay carries net debt around $504 million, roughly two times operating income, with interest coverage near seven times, manageable but not fortress-like for a company funding a heavy capex program through a downturn. To its credit, the share count has edged down rather than up, so management is not diluting holders to fund the expansion. But that means the capacity is being financed from cash flow and the balance sheet, leaving less room for error if the cycle stalls. The bull case requires the upturn, the margin recovery, and the capex paying off all at once, and the price has already credited that sequence.

Valuation

Vishay is a cyclical business priced off its mid-cycle, not its trough, and getting that right is the whole valuation. Because trailing earnings are depressed by the downturn, the cleaner read uses the company's own through-the-cycle margins on current revenue: on that basis the price pays about 36 times normalized operating income, which inverts to operating growth held near its self-funding ceiling for roughly twelve years. The pace is within what Vishay has delivered in past upturns; the stretch is the duration.

The methods we use to triangulate are distorted by the trough and need to be read with that in mind. Anchored on near-zero trailing earnings, the earnings-based methods produce absurd multiples and tiny fair values, which is the math telling you the denominator has collapsed, not that the business is worthless. The more meaningful reads are the ones less sensitive to the trough: the forward-growth projection, crediting a revenue recovery, lands in the $40s to high $50s, near but mostly below the price, and the peer-multiple methods on enterprise value reach the low $30s. Even on the kindest forward frame the price sits at or above where the methods land, which is why the characterization is that the price is a bet beyond what the standard frames comfortably support. The bet is the recovery, and the price has already paid for it. The closest comparison is the broader semiconductor and components cohort, where the peer filings carry the same cycle-sensitive economics.

Solvency is the floor under the cyclical bet. Net debt near $504 million sits around two times operating income with interest coverage near seven times, and the share count has fallen slightly rather than risen. That is a company funding its expansion without diluting holders, which is the right discipline, but it also means the balance sheet, not outside capital, absorbs the cost if the upturn is late. The downside is bounded by real assets and a manageable debt load; the upside is entirely a function of the cycle the price has front-run.

Catalysts

Vishay's Q1 2026 print was the clearest sign yet that the cycle has turned. Revenue rose about 17.3% year over year to roughly $839.2 million, above the company's guidance, with gross margin recovering to about 21.0% and the company swinging to a GAAP profit of about $0.05 per share from a year-earlier loss. The forward demand signal was stronger still: total book-to-bill ran about 1.34, led by roughly 1.47 in semiconductors, meaning new orders are outpacing shipments across the portfolio.

Guidance pointed to continued recovery. For Q2 2026 management guided to revenue of roughly $875 million to $905 million with gross margin near 22%, a further sequential step up. Management framed the results as evidence that its Vishay 3.0 strategy is working, pointing to capacity investments in higher-growth, higher-margin products and demand strength in automotive, industrial, and aerospace and defense, with AI-related applications cited as a growth area. The watch items are the durability of the order momentum and whether the heavy capacity spending converts into the margin recovery the price already assumes.

Peer Cohorts (Per Segment, With Filing Citations)

MOSFETs (reported)

• DIOD (DIODES INC /DEL/)
• FY2025 10-K: …the Company's growth initiatives in the automotive and industrial end-markets. This U.S.-based facility, together with the Company's existing wafer fabrication facilities in Asia and Europe, further enhances the Company's global manufacturing operations; • In 2020, we acquired Lite-On Semiconductor ("LSC") and its…
• FY2025 10-K: …and does not, imply a relationship with, or endorsement or sponsorship of us by, the trade name or trademark owners. All trademarks appearing in this Annual Report not owned by us are the property of their holders. COMPETITION Numerous s emiconductor manufacturers and distributors serve the discrete, logic, analog,…
• ON (ON Semiconductor Corporation)
• FY2025 10-K: …Indirect Time of Flight sensors Gate Driver products See Note 3: ''Segments and Revenue'' in the notes to our audited consolidated financial statements included elsewhere in this Form 10-K for other information regarding our segments, their revenue and gross profit derived from each segment. Products and Technology…
• FY2025 10-K: …personnel. Our competitive position with respect to the above is enhanced by long-standing relationships with leading customers. Our ability to compete successfully depends on internal and external variables. These variables include, but are not limited to, the timeliness with which we can develop new products and…
• POWI (POWER INTEGRATIONS, INC.)
• FY2025 10-K: …with alternatives from such companies as Infineon, Mitsubishi Electric, Fuji Electric, Semikron and Hangzhou Firstack Technology Co., as well as driver circuits made up of discrete devices. Our motor-driver ICs compete with power modules from such companies as ON Semiconductor, Infineon, STMicroelectronics,…
• FY2025 10-K: …other functions, converting alternating current ("AC") to direct current ("DC") or vice versa, reducing or increasing the voltage, and regulating the output voltage and/or current according to the customer's specifications. A large percentage of our products are ICs used in AC-DC power supplies, which convert the…
• NVTS (Navitas Semiconductor Corporation)
• FY2025 10-K: …as GaN-based and SiC-based power semiconductors. Our competitors include both global semiconductor companies with diversified product portfolios and smaller semiconductor companies with a narrow product or market focus. Similarly, our competitors include companies that outsource manufacturing and foundry services…
• FY2025 10-K: …third party fees paid to consultants, prototype development expenses, and other costs incurred in the product and technology design and development processes. Segment Reporting The Company is organized and operates as one reportable segment, the design, development, manufacture and marketing of integrated circuits…
• MCHP (MICROCHIP TECHNOLOGY INCORPORATED)
• FY2025 10-K: …its subsidiaries. Item 1. Business Overview We develop, manufacture and sell smart, connected and secure embedded control solutions used by our customers for a wide variety of applications. Our strategic focus includes general purpose and specialized 8-bit, 16-bit, and 32-bit mixed-signal microcontroller,…
• FY2025 10-K: …to manufacture certain of our products and make it difficult or impossible to compete with other semiconductor memory manufacturers who are able to obtain sufficient quantities of these materials from China or other countries. We are dependent on wafer foundries and other contractors, as are our SuperFlash and other…
• NXPI (NXP Semiconductors N.V.)
• FY2025 10-K: …defined vehicle (SDV) middleware for the growing ecosystems in & around vehicles, smart factories, robotics, homes and buildings. Enabling innovation at our customers as well as reducing complexity, integration efforts and shorten time to market is a key element of our strategy. We believe we have the broadest Arm…
• FY2025 10-K: …is a combination of three different application markets, namely secure edge identification, 5G radio power and digital network communication solutions. In secure edge identification solutions, NXP has extensive experience providing customers with solutions for applications demanding the highest security and…
• MPWR (MONOLITHIC POWER SYSTEMS INC)
• FY2025 10-K: …of such products. We consider our primary competitors to include Analog Devices, Infineon Technologies, NXP Semiconductors, ON Semiconductor, Power Integrations, Renesas Electronics, ROHM Semiconductor, Semtech, STMicroelectronics and Texas Instruments. 9 Table of Contents We expect continued competition from…
• FY2025 10-K: …partners utilize prior to shipping to our customers. The manufacturing facilities we utilize in Asia enable us to benefit from shorter manufacturing cycle times and lower labor and overhead costs. We have expanded our product testing capabilities in these facilities and are able to take advantage of the rich pool of…

Diodes (reported)

• DIOD (DIODES INC /DEL/)
• FY2025 10-K: …concerned with quality and consistency. Our market focus is on high-growth, end-user applications in the following areas: • Automotive: connected driving, comfort/style/safety, electrification/powertrain; • Industrial: embedded systems, industrial automation, medical, energy management, smart buildings; 54 •…
• FY2025 10-K: …are on terms no less favorable to us than would be obtained from unaffiliated third parties. 9 OTHER INFORMATION We were incorporated in 1959 in California and reincorporated in Delaware in 1968. SEASONALITY Historically, our net sales have been affected by the cyclical nature of the semiconductor industry, whereby…
• ON (ON Semiconductor Corporation)
• FY2025 10-K: …Indirect Time of Flight sensors Gate Driver products See Note 3: ''Segments and Revenue'' in the notes to our audited consolidated financial statements included elsewhere in this Form 10-K for other information regarding our segments, their revenue and gross profit derived from each segment. Products and Technology…
• FY2025 10-K: ;term gross margin expansion and enable efficient scaling of differentiated high‑value power products. AMG AMG designs and develops a comprehensive range of analog and mixed-signal solutions including power‑management, sensor‑interface, connectivity, and standard products that serve automotive, industrial automation,…
• NXPI (NXP Semiconductors N.V.)
• FY2025 10-K: …defined vehicle (SDV) middleware for the growing ecosystems in & around vehicles, smart factories, robotics, homes and buildings. Enabling innovation at our customers as well as reducing complexity, integration efforts and shorten time to market is a key element of our strategy. We believe we have the broadest Arm…
• FY2025 10-K: …we believe the latter will be the most important driver for growth in the automotive semiconductor market, while the stagnation of global vehicle sales and production will make the former less relevant. The increase of the average semiconductor content is being driven by the proliferation of electronic features…
• MCHP (MICROCHIP TECHNOLOGY INCORPORATED)
• FY2025 10-K: …balances of the Company's receivables. Note 3 . Geographic and Segment Information The Company's business is made up of two operating segments, semiconductor products and technology licensing. These segments represent management's view of the business for which separate financial information is available and…
• FY2025 10-K: …its subsidiaries. Item 1. Business Overview We develop, manufacture and sell smart, connected and secure embedded control solutions used by our customers for a wide variety of applications. Our strategic focus includes general purpose and specialized 8-bit, 16-bit, and 32-bit mixed-signal microcontroller,…
• POWI (POWER INTEGRATIONS, INC.)
• FY2025 10-K: …current ("DC") or vice versa, reducing or increasing the voltage, and regulating the output voltage and/or current according to the customer's specifications. ​ A large percentage of the Company's products are ICs used in AC-DC power supplies, which convert the high-voltage AC from a wall outlet to the low-voltage DC…
• FY2025 10-K: …other functions, converting alternating current ("AC") to direct current ("DC") or vice versa, reducing or increasing the voltage, and regulating the output voltage and/or current according to the customer's specifications. A large percentage of our products are ICs used in AC-DC power supplies, which convert the…

Optoelectronic Components (reported)

• DIOD (DIODES INC /DEL/)
• FY2025 10-K: …and does not, imply a relationship with, or endorsement or sponsorship of us by, the trade name or trademark owners. All trademarks appearing in this Annual Report not owned by us are the property of their holders. COMPETITION Numerous s emiconductor manufacturers and distributors serve the discrete, logic, analog,…
• FY2025 10-K: …of Financial Condition and Results of Operations - Business Outlook" in Part II, Item 7 and "Risk Factors - The success of our business depends on the strength of the global economy and the stability of the financial markets, and any weaknesses in these areas may have a material adverse effect on our net sales,…
• ON (ON Semiconductor Corporation)
• FY2025 10-K: …Indirect Time of Flight sensors Gate Driver products See Note 3: ''Segments and Revenue'' in the notes to our audited consolidated financial statements included elsewhere in this Form 10-K for other information regarding our segments, their revenue and gross profit derived from each segment. Products and Technology…
• FY2025 10-K: …to shift its focus to the areas of advanced imaging performance and long product lifecycles. Photon‑counting technologies, including SPAD arrays and SiPM devices, continue to play a role in emerging applications such as depth sensing, factory automation, safety systems, and robotics. 8 Table of Contents Customers We…
• NXPI (NXP Semiconductors N.V.)
• FY2025 10-K: …100 % 8" 0.18-0.50 CMOS, eNVM, BCDMOS Chandler RF, United States 100 % 6" 0.25-0.40 GaN Austin (Ed Bluestein), United States 100 % 8" 0.09-0.18 CMOS, eNVM, BCDMOS, Radar Back-end Kaohsiung, Taiwan 100 % - - NFC, Automotive Car-access, In-Vehicle Networking, Micro-controllers, ADAS (Radar), Analog, Mixed-Signal and…
• FY2025 10-K: …operating system software products to facilitate the encryption-decryption of data, and the interaction with the reader infrastructure systems. Our solutions are developed to provide extreme levels of security of user information, undergoing stringent and continued global governmental and banking certification…
• MCHP (MICROCHIP TECHNOLOGY INCORPORATED)
• FY2025 10-K: …its subsidiaries. Item 1. Business Overview We develop, manufacture and sell smart, connected and secure embedded control solutions used by our customers for a wide variety of applications. Our strategic focus includes general purpose and specialized 8-bit, 16-bit, and 32-bit mixed-signal microcontroller,…
• FY2025 10-K: …balances of the Company's receivables. Note 3 . Geographic and Segment Information The Company's business is made up of two operating segments, semiconductor products and technology licensing. These segments represent management's view of the business for which separate financial information is available and…

Resistors / Inductors / Capacitors (reported)

• APH (AMPHENOL CORP /DE/)
• FY2025 10-K: …a discussion of certain risks related to the availability of and dependence on raw materials and components, refer to the risk factor titled " The Company and certain of its suppliers and customers have experienced, and may in the future experience, difficulties obtaining certain raw materials and components, and the…
• FY2025 10-K: …mobile devices, industrial, communications networks, automotive, commercial aerospace and defense end markets. ​ ● Harsh Environment Solutions - the Harsh Environment Solutions segment designs, manufactures and markets a broad range of ruggedized interconnect products, including connectors and interconnect systems,…
• TEL (TE CONNECTIVITY PLC)
• FY2025 10-K: …and consumer applications. The Transportation Solutions segment's major competitors include Yazaki, Aptiv, Sumitomo, Sensata, Honeywell, Molex, and Amphenol. Industrial Solutions The Industrial Solutions segment is a leading supplier of products that connect and distribute power, data, and signals. The primary…
• FY2025 10-K: …and custom-designed solutions to meet the daily demands of home appliances, including washers, dryers, refrigerators, air conditioners, dishwashers, cooking appliances, water heaters, air purifiers, floor care devices, and microwaves. ● Aerospace, defense, and marine (19% of segment's net sales)- We design, develop,…
• LFUS (LITTELFUSE INC /DE)
• FY2025 10-K: …protection and switching thyristors, silicon and silicon carbide metal-oxide-semiconductor field effect transistors ("MOSFETs") and diodes, and insulated gate bipolar transistors ("IGBT") technologies. The segment covers a broad range of end markets, including data center - computing and communication, data center…
• FY2025 10-K: …focused on a more sustainable, connected, and safer world. The ever-increasing advancements of applications surrounding these themes continue to drive greater demand for the Company's innovative, reliable products and a higher level of product content within a broad range of applications. Technologies within the…
• CTS (CTS CORPORATION)
• FY2025 10-K: 5, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-06. NOTE 2 - Revenue Recognition CTS designs and manufactures sensors, actuators, and electronic components for original equipment manufacturers and the U.S. Government. For each contract with a customer, we…
• FY2025 10-K: …to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods net of reserves. We follow the five step model to determine when this transfer has occurred: 1) identify the contract(s) with the customer; 2) identify the performance obligations in the…

Methodology Note

• Priced-in inversion: the valuation is inverted on the current price to recover the operating-income growth, duration, and steady-state margin the price embeds (ROE for financials, FFO growth for REITs).
• Valuation x-ray: the valuation models, grouped into four families (asset, earnings, relative, growth). Each model is expressed as a price/FV ratio (distance from price), not a point fair-value estimate. The spread across families is the disagreement.
• Economic-unit decomposition (SOTP): each disclosed business unit is assigned its native valuation basis before any multiple is applied. Operating units are valued on enterprise value; funded financial units are valued on their own common equity, because their borrowings fund earning assets rather than levering the parent. A company total is stated only once every material unit carries a supported value and the parent capital bridge reconciles.
• Solvency: net cash/debt, net-debt-to-NOPAT, interest coverage, and share-count CAGR from EDGAR financials (net debt / FFO and fixed-charge coverage for REITs; regulatory-capital framing for financials).
• Peer cohorts: per-segment comparables with deep-linkable SEC filing citations.

Fundamentals sourced from SEC EDGAR filings. Current price from Databento. The priced-in inversion and valuation x-ray are computed by the boothcheck engine; narrative composed by AI from the structured data.