Growth has slowed down because most of the royalty income is now derived from fixed fee licenses. However, there are avenues for growth:
1. We do not know if 5G is included in the fixed fee licenses.
2. There are additional licenses possible in the 3G/4G market.
3. IoT.
For now, the SP appears to be about what would be expected based entirely on projected recurring royalties of $360-$380 million per year.
My calculation of SP based on recurring royalty projections as of today:
Projected royalty income (midpoint of projected range): $370 million
Expenses (assumed same as 2016): $229 million
Gross income: $141 million
Net income (assumed about 30% for taxes): $100 million
EPS (based on 35.2 million shares): $2.85
Using an EPS multiplier of 26.9 (same as the S&P500 trailing P/E), stock price would be $76. Adding in cash (be careful here, don't use total cash because part of that is deferred revenue), we get to today's price.
jmo
LA