g'day guys welcome back to the Devon 2 good investing channel in this video today we're going to do a quick two minute valuation on Micron stock so one of my favorite ways to Value Micron stock is using Book value due to the cyclical nature of Micron and when Micron trades at a price the book of one that is pretty much the theoretical replacement value so if it trades at across the book of one it means just Micron could sell all their assets and you'd get your money back so if you buy a micron at a price the book of one that means you get all future cash flows for three as no future cash flows are currently being priced in and if we look here at this chart I've circled the moments in time where Micron has traded at or below a price the book of one and these have been historically good times to enter micron so currently Micron has a book value per share of 45. 62 cents and based off long-term dram and nand demand Outlook Book value should grow at approximately 15 per year so if we go out five years to the Q3 of 2027 book value per share should be around 91. 76 so if Micron trades at a price to book ratio of two which is well within its sort of historic range this would infer a Q3 2027 Target price of 183.
52 cents per share and this would result in a kagger of 26. 3 percent from today's current share price of 57 and 57.
