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Formfactor Inc

FORMAbove valueExpectations · demanding

Held by 3 superinvestors.

Price$107.90
Holders3
Total value$27.3M

SEC 10-K · fundamentals

Business quality

as of 2025-12-27

Valuation basis: trailing twelve months to 2026-06-27 — latest 10-K plus unaudited 10-Q filings.

Revenue growth
+2.8%
Net margin
6.9%
ROE
5.3%
FCF margin
1.5%
Revenue $693.6M → $785.0M · 6y
What makes a business high quality

Valuation · value band

Above fair value

$12/ sh · growth-anchored intrinsic value
margin of safety
fair value
above fair value
$108
cheaperpricier

Zero-growth floor

$14

Central IV

$12

Optimistic top

$15

Formfactor Inc (FORM): A conservative value band $14–$15 / sh (zero-growth floor to growth-capped optimistic top); central read about $12. Today’s price sits above that band (price $108 as of 2026-08-24).

The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.

Revenue growth 1% (lower of historical trend and fundamental cap, capped by moat) · moat 0 yr · discount 10.6% · Zero-growth downside $14

Price as of 2026-08-24 · yahoo · DGS10 4.7% @ 2026-08-21.

Method & numbers

Model cautions

  • Owner-earnings yield diverges sharply from the 10-year Treasury (over 300 bps).

A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.

Owner-earnings DCF $9.66 – $14.08 · Greenwald zero-growth $14.86 · zero-growth base $14.86 · reproduction $14.36

Moat Commodity-like · terminal value 41% of present value · owner-earnings yield 1% vs 10Y 4.7%.

Graham earnings-power value (normalized NOPAT)$12.38 – $14.86 / sh

Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.

Years: TTM 2026-06-27, 2024, 2023, 2022, 2021

v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 125% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back).

Buffett owner-earnings value$10.18 – $12.44 / sh

Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9–11% rate band (read as a cost-of-equity proxy). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).

Years: TTM 2026-06-27, 2024, 2023, 2022, 2021

v1 simplifications: Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 125% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% band as a cost-of-equity proxy; no leverage premium applied (net cash or debt within the no-charge range).

Reproduction value = tangible net assets $880.84M + capitalized R&D $262.28M（FY 2026, 2024, 2023, 2022） = $14.36 / sh. Reproduction value = tangible net assets (equity − goodwill − intangibles) + capitalized R&D (5y straight-line), ÷ diluted shares.

Moat reading: Franchise test compares earnings power (EPV) against reproduction value on both AV_conservative (tangible + capitalized R&D) and AV_reproduction (conservative + acquired-reset proxy). Both must clear the franchise multiple for a moat signal; near it, a commodity; below it, value destruction. A directional reading, not a verdict.

Growth value gated to zero — no moat or ROIIC ≤ WACC, so no growth value is credited.

Window TTM 2026-06-27, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 12% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.

Owner-earnings DCF: growth g₁ 1% · OE FY TTM 2026-06-27, 2024, 2023, 2022, 2021 · Discount band: 9.24%–12.00% (DGS10 +4.5% to a 12% strict end, as of 2026-08-21). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp.

Valuation basis: trailing twelve months to 2026-06-27 — latest 10-K plus unaudited 10-Q filings.

What the price is betting

Today's price pencils in about over 30.0% (outside the usual range) a year in owner-earnings for the next few years. Revenue actually grew 1.4% a year.

The market wants it well ahead of its own track record.

How to read intrinsic value

SEC 13F · holders

Superinvestors Holding This Security

3 holders · $27.3M combined · this quarter +2 opened / -0 exited

This quarter2 opened1 added
Holders 1 → 3 · last 3q
  • Ray Dalio
    Value$26.0MWeight (prev→now)0.0% → 0.1% ▲
  • Lee Ainslie
    Value$728,321Weight (prev→now)New · 0.0%
  • Polen Capital
    Value$574,309Weight (prev→now)New · 0.0%

SEC 13F · notes

Written summary

Formfactor Inc (FORM) is held by 3 of the superinvestors tracked on Compounder, with a combined $27.3M in reported 13F value. The largest position belongs to Ray Dalio, where it makes up 0.1% of the portfolio.

Other notable holders by value include Lee Ainslie (0.0% of its book) and Polen Capital (0.0% of its book).

Over the latest quarter, 2 of the tracked filers opened a new position in FORM, 1 added to existing ones, 0 trimmed, and 0 sold out entirely.

Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.

How to read a 13F

SEC 13F · co-ownership

Also held by these investors

Investors holding Formfactor Inc (FORM) also commonly hold →

FORM's price is not below its conservative value band. See current strike-zone stocks

Also on

Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14

Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.

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