Celestica Valuation

Is CLS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CLS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CLS (CA$76.63) is trading below our estimate of fair value (CA$255.35)

Significantly Below Fair Value: CLS is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for CLS?

Other financial metrics that can be useful for relative valuation.

CLS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA12.5x
PEG Ratio3.6x

Price to Earnings Ratio vs Peers

How does CLS's PE Ratio compare to its peers?

The above table shows the PE ratio for CLS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.9x
FTG Firan Technology Group
14.9x8.1%CA$128.9m
SFTC Softchoice
18.2x17.7%CA$1.0b
002241 Goertek
46x23.4%CN¥62.7b
FN Fabrinet
32.3x17.9%US$8.9b
CLS Celestica
20.7x5.7%CA$9.1b

Price-To-Earnings vs Peers: CLS is good value based on its Price-To-Earnings Ratio (20.7x) compared to the peer average (27.9x).


Price to Earnings Ratio vs Industry

How does CLS's PE Ratio compare vs other companies in the North American Electronic Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: CLS is expensive based on its Price-To-Earnings Ratio (20.7x) compared to the North American Electronic industry average (20.6x).


Price to Earnings Ratio vs Fair Ratio

What is CLS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CLS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.7x
Fair PE Ratio24.5x

Price-To-Earnings vs Fair Ratio: CLS is good value based on its Price-To-Earnings Ratio (20.7x) compared to the estimated Fair Price-To-Earnings Ratio (24.5x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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